FXStreet (Córdoba) – Gold prices surged to their highest levels since early November, with spot reaching $1,109.76 an ounce by the end of the US session, boosted by Chinese-driven risk aversion, as worldwide stocks plummeted following a halt in trading after the Shanghai Composite fell by 7.04%, less than half an hour after the opening.
Gold technical view
“The commodity maintains a bullish tone, although the rally can be reversed as fast as it surged, should market sentiment improve during the upcoming weeks. In the meantime, the price is breaking above its 100 DMA, while the technical indicators in the daily chart head sharply higher well above their mid-lines, supporting some further advances”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has accelerated far above a bullish 20 SMA, while the technical indicators maintain their strong bullish slopes, despite being in extreme overbought territory, also in line with additional gains.”
Support levels: 1,103.50 1,095.20 1,088.90. Resistance levels: 1,110.40 1,122.60 1,131.15.
(Market News Provided by FXstreet)