Gold settles at 2-week high

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 5, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Gold prices advanced for second day in a row as they remained underpinned by the risk off environment amid escalating tensions in the Middle East and concerns over economic slowdown in China

    The yellow metal settled 0.3% higher at $1,078 an ounce, its highest settlement since Dec 21. A day earlier, the gold reached an intraday peak of $1,083 an ounce.

    Gold technical perspective

    “The daily chart is beginning to present a more constructive scenario, given that the technical indicators have advanced further higher from their mid-lines and maintain their bullish slopes, while the price is above a still horizontal 20 SMA. The metal, however, needs at least to establish itself beyond $1110.00 a troy ounce to confirm a steadier recovery in the longer term”, said Valeria Bednarik chief analyst at FXStreet. “In the 4 hours chart the upside is favored, as the price is advancing above its moving average, with the 20 SMA about to cross above the 100 and 200 SMAs, and the technical indicators consolidating near overbought levels with limited bullish slopes”.

    Support levels: 1,071.20 1,066.10 1,059.30. Resistance levels: 1,083.40 1,088.90 1,093.50.
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