Gold finishes the day lower

FXStreet (Córdoba) – Gold drifted lower at the beginning of the week, tracking broad weakness in commodities, with spot falling down to $1,066.43 during the American afternoon, and ending the day below $1,070 an ounce.

The metal started falling during the Asian session, as poor Japanese data spurred some limited risk aversion that extended throughout the day.

Gold technical perspective

“From a technical point of view, the daily chart for spot shows that the price is now slightly below a horizontal 20 SMA, while the technical indicators have turned south, but in neutral territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is now below its moving averages, with the 20 SMA gaining bearish slope around 1,072.80, now the immediate resistance, and the technical indicators heading south below their mid-lines, increasing chances of a bearish continuation for the upcoming sessions”.

In terms of technical levels, Bednarik sees next supports at 1,066.40, 1,060.90 and 1,051.85, while she locates resistances at 1,072.80, 1,082.40 and 1,088.90.

Gold drifted lower at the beginning of the week, tracking broad weakness in commodities, with spot falling down to $1,066.43 during the American afternoon, and ending the day below $1,070 an ounce.

(Market News Provided by FXstreet)