Gold searching for direction around $1,090 an ounce

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Gold prices enjoyed a consolidative phase on Monday, oscillating between small gains and losses throughout the day amid low volume with US markets closed in observance of the Martin Luther King Holiday.

    Gold prices started the week with a positive tone, with spot rallying up to a high of $1,093.28 a an ounce on risk aversion, although it finally turned into the red amid broad dollar's strength in dull trading. The metal was last trading around $1,090 an ounce, virtually unchanged on the day.

    Gold technical view

    “Technically, the daily chart shows that selling interest contained rallies around 1,092.00, the 38.2% retracement of the latest bullish run, but that the price is above its 20 SMA, while the technical indicators hold flat well above their mid-lines, limiting the risk of a bearish breakout”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price is a handful of cents above a horizontal 20 SMA, while the technical indicators lack directional strength around their mid-lines given no clues on what's next for gold. Anyway, the commodity's trend will continue depending on sentiment, with improved market mood pressuring it back down towards the lows around 1,071.40 posted last week.”

    Support levels: 1,085,44 1,071.40 1,063.40. Resistance levels: 1,092.00 1,097.65 1,106.40.
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