FXStreet (Córdoba) - Gold prices fell for a fourth day in a row, closing the day at levels not seen since early October, with spot gold ending the day around $1,135.30 a troy ounce.
The commodity broke through 1,140 during the Asian session, triggering some technical stops and fueling the decline that began with a hawkish US Federal Reserve last Wednesday. The bright metal has been trading accordingly to the US Central Bank pretty much since the year started, rallying in October after the Fed kept policy unchanged in September. But the latest statement opening doors for a December rate hike, put bears back in control.
Gold technical view
“Technically speaking the daily chart shows that the price has extended below the 61.8% retracement of that monthly rally, whist the 20 SMA turns lower well above the current level and with the RSI indicator still heading south around 37, in line with further declines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA heads sharply lower above the current level, while the RSI indicator hovers in oversold territory and the Momentum indicator lacks directional strength well below its 100 level, supporting the longer term view”.
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