FXStreet (Córdoba) – Gold’s rally continues, with spot trading at its highest since early November and near $1,127.96 an ounce, the daily high.
The bright metal surged in the American afternoon, tracking oil’s prices in their way higher. The advance was also supported by the FOMC statement, as the Central Bank took note of the adverse impact of the strong USD on exports and inflation.
Gold technical view
“The upward potential seen on previous updates remain firm in place, given that the price has advanced above its 200 DMA while the daily indicators maintain sharp bullish slopes well above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is far above its moving averages, all of which head higher, while the technical indicators have lost upward strength near overbought levels. Nevertheless and considering the price is holding near its high ahead of the Asian opening, further gains are likely, particularly on a break above 1,130.10 the immediate resistance”.
Support levels: 1,122.90 1,113.05 1,109.60. Resistance levels: 1,130.10 1,142.50 1,150.80.
(Market News Provided by FXstreet)