FXStreet (Córdoba) – Gold prices edged lower this Wednesday, falling as low as $1,132.06 from where it bounced and managed to recover some ground before the closing bell.
The commodity fell as risk aversion sentiment eased on rising European and American stocks, confined to a narrow range ahead of upcoming risk events that can determinate whether the FED will be able to raise rates or not this September.
Gold technical picture
“Daily basis, the price is now pressuring a bullish 20 SMA, whilst the technical indicators have turned lower in positive territory, limiting the upward potential for the upcoming sessions”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the metal has turned neutral, as the price stands a few cents below a horizontal 20 SMA, whilst the Momentum indicator remains flat around 100 and the RSI lacks directional strength around 46”.
“An advance beyond 1,134.70, the immediate resistance, may see some intraday gains, although the risk is towards the downside on a dovish ECB for this Thursday”, Bednarik added.
Support levels: 1,129.40; 1,123.75 and 1,109.20. Resistance levels: 1,137,40; 1,144.70 and 1,152.90.
(Market News Provided by FXstreet)