Gold snaps two-day win streak

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 22, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - Gold edged lower on Tuesday and closed with mild losses, snapping a two-day gain streak, despite a weaker US dollar.

    Gold fell 0.6% and finished the day at $1,073.20 an ounce, despite the greenback weakened on the back of disappointing US data.

    On Tuesday, US third quarter GDP was revised down to 2.0%, while separated data showed existing home sales fell 10.5% in November (0.0% exp) and the Richmond Fed mfg index rose to positive ground in December (6 vs -3 prev).

    The yellow metal has traded erratically over the past days after the Federal Reserve raised rates from record lows. In the lead up to the Fed's meeting, the metal scored a 6-year low of $1,045.

    Gold technical view

    “The daily chart however, shows that the price is back below the daily descendant trend line broken briefly during the previous Asian session, but remains above a horizontal 20 SMA, currently around 1,069.45. In the same chart, the technical indicators are heading slightly lower around their mid-lines, lacking enough momentum to confirm a steeper decline”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart the technical indicators have turned sharply lower from near oversold levels and are currently approaching their mid-lines, while the 20 SMA maintains a bullish slope and offers an immediate support around 1,068.10.”
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