FXStreet (Córdoba) – Gold prices pulled back from 2-month highs struck the previous session at $1128 an ounce, with spot falling down to $1,115/oz by the end of the American session.
The recovery in oil prices spurred some risk appetite on Thursday, keeping investors away from the bright metal. Also, uncertainty surrounding the Fed policy outlook, after yesterday’s meeting failed to shed light over next steps, prompted some profit taking in the metal.
Gold technical view
“The upward potential has lost steam, as in the daily chart, the commodity is back below its 200 DMA, but remains far above the 20 and 100 DMAs, whilst the technical indicators have turned slightly lower, but remain well above their moving averages”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the price is currently below its 20 SMA, which offers an immediate short term resistance at 1,116.90, while the Momentum indicator is attempting to bounce from its mid-line, and the RSI indicator heads lower around 51, not yet suggesting further declines. The key support stands at 1,109.60 a major static level, and if it is broken, the commodity may well accelerate its decline ahead of the weekend.”
Support levels: 1,109.60 1,100.20 1.093.50. Resistance levels: 1,116.90 1,123.10 1,128.00.
(Market News Provided by FXstreet)