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Gold surrenders early gains

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 1, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - Gold prices failed to hold early gains and closed almost flat on Tuesday as investors focus on US data and Fed officials comments, including chair Janet Yellen on Wednesday, for further clues on whether the Fed will raise rates this month.

    The yellow metal reached a peak near $1,075 an ounce but retreated toward $1,062/oz before settling 0.1% down around $1,064/oz.

    Prospects of a Fed’s rate hike have been pressuring gold prices over the last months, with the metal having lost more than 10% since mid-October to hit a 5 ½-year low last week at $1,052 an ounce.

    Gold technical view

    “For this Wednesday, the daily chart shows that the price met selling interest around a strongly bearish 20 SMA, whilst the technical Momentum indicator is turning lower below its 100 level and the RSI indicator bounces from oversold territory, but remains well into negative territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is below its 20 SMA, while the technical indicators have lost their upward strength below their mid-lines, and are turning slightly lower, increasing the risk of a downward move on a break below the 1,060.00 region”.

    Bednarik locates next support levels at 1,060.30, 1,052.70 and 1,045.10, while she places resistances at 1,075.50, 1,082.50 and 1,091.00.
    For more information, read our latest forex news.
     

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