Gold manages to close positively after fresh 5-year lows

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Gold fell to a fresh 5-year low near $1,063 an ounce at the beginning of the day but managed to recover ground and closed with mild gains.

    The yellow metal made an upside attempt following FOMC minutes but it met selling interest around 1,075.50, now the immediate resistance for Thursday.

    FOMC minutes failed to provide support to the dollar even though most participants anticipated that the economic conditions “could well be met by the time of the next meeting”, they will continue to assess data in the making decision process.

    Gold technical view

    “The commodity closed the day with some limited gains above the 1,070 level, and the daily chart shows that the technical indicators are aiming higher, but still in extreme oversold territory, far from suggesting something more than an upward corrective movement”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart, shows that the technical indicators are bouncing from oversold levels, but remain below their mid-lines, whilst the 20 SMA aims lower above the current level, acting as dynamic resistance around 1,080.00, should the commodity extend beyond the mentioned daily high”.

    Support levels: 1,065.40 1,058.20 1,051.90. Resistance levels: 1,075.50 1,080.20 1,089.35.
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