Gold dips below $1,100 an ounce

FXStreet (Córdoba) – Gold prices continued to retreat from their recent highs, with spot breaking below $1,100.00 an ounce during the American afternoon and settling around $1,095.00 by the end of the US session.

The bright metal eased back in spite of the risk aversion sentiment following another plunge in Chinese stock market, dragged down by a stronger dollar.

Gold technical view

“Anyway, the long term bearish trend has been far from giving signs of exhaustion, and this recent behavior suggest the commodity will likely resume its slide. Daily basis, the price faltered around the 100 DMA, while the technical indicators turned south, but so far hold above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the bearish momentum is stronger after the technical indicators crossed below their mid-lines, while the price extends below its 20 SMA. The immediate support comes at 1,091.80, the 38.2% retracement of the latest bullish run”.

Support levels: 1,091.80 1,082.10 1,076.10. Resistance levels: 1,097.65 1,113.05 1,122.60.

Gold prices continued to retreat from their recent highs, with spot breaking below $1,100.00 an ounce during the American afternoon and settling around $1,095.00 by the end of the US session.

(Market News Provided by FXstreet)