FXStreet (Córdoba) – Gold prices fell at the beginning of the day, retreating from a weekly high set above $1,109 an ounce the previous day as global stocks bounced, boosted by Draghi’s comments suggesting the ECB may provide more stimulus in March.
The metal however, recovered during the US afternoon, erasing all of its intraday losses as sentiment switched back and stocks pared gains. The spot was last trading at $1,101 an ounce, virtually unchanged on the day, having rebounded from a low of $1,092/oz.
Gold technical perspective
“The bright metal is holding above 1,100 and maintains a positive tone, although the daily chart shows that the 100 DMA continues limiting gains. In this last time frame, the technical indicators head nowhere in positive territory, while the price has held above the 38.2% retracement of its latest bullish run, all of which supports some further advances”, says Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has met buying interest around a bullish 20 SMA, while the technical indicators have bounced from their mid-lines presenting strong bullish slope and also in line with additional advances for the upcoming sessions”.
Bednarik locates next support levels at 1,092.40, 1,082,40 and 1,073.50, while she sees resistances at 1,109.90, 1,117.90 and 1,123.80.
(Market News Provided by FXstreet)