FXStreet (Córdoba) - Gold prices started the week with strong upward gaps, and spot reached a daily high of $1,098.09. The commodity, however, was unable to sustain its gains and fell below the 1,083 level by the US close, filling the weekly opening gap.
The bright metal has somehow confirmed the strong dominant bearish trend, and its strong correlation to expectations of a rate hike in the US.
Gold technical perspective
“Technically, the daily chart shows that the indicators have barely corrected extreme oversold readings before resuming their declines, whilst the 20 SMA has extended further its decline well above the current level, but below the 100 and 200 SMAs, all of which supports further falls”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is back below its 20 SMA, whilst the Momentum indicator hovers around its mid-line and the RSI indicator heads south around 41, this latter anticipating a downward continuation on a break below 1,079.50, the immediate support”.
Bednarik sees next support levels at 1,079.50, 1,071.00 and 1,062.80 while she places resistances at 1,085.90, 1,094.50 and 1,102.30.
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