Tuesday, October 6, 2015

Gold steadies near 1-week highs after Friday’s rally

FXStreet (Córdoba) - Gold prices eased slowed it down a bit at the beginning of the week following a sharp rally ignited by weak NFP reading, having spent most of the day within a range to end the day firm around $1,135.00 a troy ounce. With China on holiday until Thursday, physical demand will likely remain subdued this week, which may see the commodity extending its consolidative range.

Gold technical perspective

“The daily chart however, shows that the price has rebounded strongly after falling down to 1,130.10, suggesting strong speculative buying interest waiting for dips. In the same chart, the price is still stuck around a bearish 100 DMA, but the 20 SMA heads higher below the mentioned daily low, whilst the technical indicators have turned south and are crossing their mid-lines towards the downside, increasing chances of further declines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the price consolidates above its moving averages, whilst the technical indicators hold near overbought territory, lacking directional strength. The metal has a strong static resistance around 1,142.50, and it will take a clear break below to confirm additional gains up to 1.156.70, September 24th daily high”.

Support levels: 1,130.10 1,121.80 1,116.80. Resistance levels: 1,142.50 1,148.60 1,156.70.
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