FXStreet (Córdoba) – Gold prices reached 2-month highs on Wednesday as geopolitical concerns prompted demand for safe-haven assets.
The yellow metal gained 1.3% and settled at its highest level since Nov 5 at $1,091.90 an ounce after hitting an intraday peak of $1,095 an ounce. The metal also recorded its third consecutive daily gain.
Amid mounting tensions between Saudi Arabia and Iran, North Korea announced it had detonated a hydrogen bomb, fueling the risk off environment and increasing the metal’s appeal. The flight to safety has also weighed on stocks worldwide.
Gold technical view
“The technical picture for spot is still looking constructive towards the upside, as the daily chart shows that the price remains near the mentioned daily high, having advanced further above a horizontal 20 SMA. In the same chart, the Momentum indicator lacks directional strength within positive territory, but the RSI indicator heads sharply higher around 62, supporting some further advances”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are beginning to look exhausted towards the upside in extreme overbought territory, supporting some consolidation ahead, rather than confirming a bearish move”.
Support levels: 1,088.90 1,081.10 1,072.90. Resistance levels: 1,095.20 1,103.50 1,110.40.
(Market News Provided by FXstreet)