Wednesday, November 18, 2015

Gold trims losses, but holds near 5-year lows

FXStreet (Córdoba) - Gold plummeted to a fresh 5-year low near $1,065 an ounce, as a return of risk appetite and growing expectations the Federal Reserve is poised to raise rates next month put the metal under renewed pressure.

Despite having bounced from the mentioned low, the metal is on track to post its sixth daily loss in a row, having fallen each day but one since October 28.

Gold technical view

“The commodity presents a strong bearish tone in its daily chart, as the technical indicators head sharply lower, despite being in oversold territory, whilst the 20 SMA maintains an almost vertical bearish slope far above the current level, reflecting the strong selling interest around the metal”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the bearish tone is also present given that the price has remained contained by a mild bearish 20 SMA on attempt of recovering, whilst the technical indicators head south well below their mid-lines”.

Support levels: 1,065.40 1,058.20 1,051.90. Resistance levels: 1,076.22 1,083.80 1,093.05.
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