19 Jan 2016
Gold back to square one
FXStreet (Córdoba) - Gold prices followed market’s mood swings on Tuesday, sinking during the first half of the day, but recovering strongly during the American afternoon, to close the day little changed at $1,089/oz.
Spot gold fell to $1,082.42 as an intraday bounce in oil prices spurred demand for high yielders, to the detriment of safe-haven gold. Since rallying 1.5% last Friday during a sell-off in global stocks, gold has consolidated around $1,090 an ounce.
Gold technical view
“Currently trading above $1,090.00 an ounce, the daily chart shows that the commodity is struggling to overcome the 38.2% retracement of the latest bullish run around 1,092.00, while the technical indicators lack directional strength above their mid-lines. In the same chart, the price rebounded from a bullish 20 DMA, but remains far below the 100 DMA”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, and according to the 4 hours chart, the technical picture is unclear, given that the price has been hovering within its latest range, and with the technical indicators diverging from each other around their mid-lines. The balance is slightly inclined towards the upside, yet some follow through beyond the mentioned 1,092 level is required to confirm an upward continuation rally.”
Support levels: 1,082,40 1,071.40 1,063.40. Resistance levels: 1,092.00 1,097.65 1,106.40.
Spot gold fell to $1,082.42 as an intraday bounce in oil prices spurred demand for high yielders, to the detriment of safe-haven gold. Since rallying 1.5% last Friday during a sell-off in global stocks, gold has consolidated around $1,090 an ounce.
Gold technical view
“Currently trading above $1,090.00 an ounce, the daily chart shows that the commodity is struggling to overcome the 38.2% retracement of the latest bullish run around 1,092.00, while the technical indicators lack directional strength above their mid-lines. In the same chart, the price rebounded from a bullish 20 DMA, but remains far below the 100 DMA”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, and according to the 4 hours chart, the technical picture is unclear, given that the price has been hovering within its latest range, and with the technical indicators diverging from each other around their mid-lines. The balance is slightly inclined towards the upside, yet some follow through beyond the mentioned 1,092 level is required to confirm an upward continuation rally.”
Support levels: 1,082,40 1,071.40 1,063.40. Resistance levels: 1,092.00 1,097.65 1,106.40.