FXStreet (Córdoba) - Gold prices saw a short-lived spike during the American afternoon, with spot climbing briefly above $1,150.00 an ounce, but the rally quickly faded and the commodity shed over $10.00, to end the day around $1,140.00.
Following the release of FOMC minutes, market's initial reaction was to sell the greenback as minutes revealed concerns over the local and foreign economic developments. However, minutes also showed a 2015 rate hike was still on the cards, which eventually boosted the USD and weighed on the commodity.
Gold technical view
“The daily chart shows that the yellow metal may resume its decline after posting a lower low and a lower high daily basis, but the 20 SMA and the 100 SMA converge around 1134.70, the immediate support and the level to break to confirm a bearish continuation. In the same chart, the Momentum indicator stands flat above its 100 level, whilst the RSI indicator is turning south around 55, limiting the upside”, said Valeria Bednarik, chief analyst at FXStreet.
Bednarik places next support levels at 1,134.70, 1,127.50 and then 1,121.20, while she locates resistances 1,146.50, 1,153.60 and 1,158.30.
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