Gold settles below $1,150 an ounce

Gold settles below $1,150 an ounce

FXStreet (Córdoba) – Gold failed to extend gains into the American session on Wednesday and closed the day little changed around $1,146 an ounce, having scored highs above $1,150.

The yellow metal has been supported by expectations the Fed may further delay the lift-off following a disappointing jobs report released last Friday.

Gold technical view

“Daily basis, the positive tone persists, as the price holds well above a bullish 20 SMA, whilst the technical indicators have partially lost their upward momentum, but hold well into positive territory. In the same chart, is now at sight a long term descendant trend line coming from 1,795.84, September 2012 monthly high, at 1,158.30 for this Thursday, which if broken, should confirm a continued advance in the price”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price held above its 20 SMA that anyway lost upward strength and turned flat, whilst the RSI indicator retreats from overbought levels and heads south around 62, maintaining the upside limited and supporting a downward corrective movement, particularly on a break below 1,142.50 the immediate support”.

Bednarik locates next support levels at 1,142.50 1,130.10 1,121.80, while she places resistances at 1,153.60 1,158.30 1,165.00.

Gold failed to extend gains into the American session on Wednesday and closed the day little changed around $1,146 an ounce, having scored highs above $1,150.

(Market News Provided by FXstreet)

By FXOpen