FXStreet (Córdoba) – Gold edged lower on Wednesday and erased previous day’s gains, as the greenback strengthened as investors continue to bet the Fed will raise rates in December following a series of mixed US data.
The yellow metal fell to a low of about $1,067 an ounce but managed to held above 5-year lows and settled 0.4% down at $1,070 an ounce.
Gold technical view
“The commodity is back trading on expectations of higher interest rates in the US, maintaining its long term bearish tone and poised to resume its decline, as in the daily chart, the technical indicators have turned sharply lower in negative territory, whilst the 20 SMA maintains a strong bearish slope above the current price”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the technical stance is bearish, as in the 4 hours chart, the price is below a mild bearish 20 SMA after failing to hold above it, whilst the Momentum indicator holds flat around its 100 level and the RSI indicator accelerated south around 41, all of which supports further declines towards the 1,050.00 region during the upcoming days”.
According to the analyst, Bednarik locates next supports at 1,066.35, 1,058.20 and 1,050.00, while she places resistances at 1,081.10, 1,089.35 and 1,094.70.
(Market News Provided by FXstreet)