FXStreet (Córdoba) – Gold prices advanced on Wednesday as the US dollar weakened across the board, with spot reaching its highest level since October 30th at $1,145 an ounce, before correcting slightly. The yellow metal ended the day at $1,141 an ounce, its highest close in over three months.
There were no clear catalysts for the slump witnessed in the US dollar, although dovish comments from Fed’s Dudley ignited the downward move at the beginning of the New York session, while disappointing ISM services PMI fueled the decline.
Gold technical view
“The bright metal continues developing its newly born bullish trend, and the daily chart for spot shows that the price extended further beyond its 200 DMA, while the technical indicators have resumed their advances and maintain healthy bullish slopes near overbought levels”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA heads north around 1,125.60, providing a strong support in the case of a downward correction, while the technical indicators have turned flat near overbought readings, rather reflecting the late pullback than suggesting that the upside is exhausted.“
Support levels: 1,134.90 1,125.60 1,115.80. Resistance levels: 1,145.50 1,153.70 1,160.00.
(Market News Provided by FXstreet)