FXStreet (Córdoba) – Gold edged lower on Tuesday and closed with mild losses, snapping a two-day gain streak, despite a weaker US dollar.
Gold fell 0.6% and finished the day at $1,073.20 an ounce, despite the greenback weakened on the back of disappointing US data.
On Tuesday, US third quarter GDP was revised down to 2.0%, while separated data showed existing home sales fell 10.5% in November (0.0% exp) and the Richmond Fed mfg index rose to positive ground in December (6 vs -3 prev).
The yellow metal has traded erratically over the past days after the Federal Reserve raised rates from record lows. In the lead up to the Fed’s meeting, the metal scored a 6-year low of $1,045.
Gold technical view
“The daily chart however, shows that the price is back below the daily descendant trend line broken briefly during the previous Asian session, but remains above a horizontal 20 SMA, currently around 1,069.45. In the same chart, the technical indicators are heading slightly lower around their mid-lines, lacking enough momentum to confirm a steeper decline”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the 4 hours chart the technical indicators have turned sharply lower from near oversold levels and are currently approaching their mid-lines, while the 20 SMA maintains a bullish slope and offers an immediate support around 1,068.10.”
(Market News Provided by FXstreet)