Gold hovers near 3-month lows

By FXStreet FXStreet (Córdoba) – Gold re-tested its recent 3-month low, with spot trading as low as $1,085 an ounce during the New York session to close the day slightly lower.

The yellow metal has been weighed by the latest US economic developments, as after the Federal Reserve hinted at a rate hike in December, nonfarm payrolls report doubled consensus, fueling expectations of a lift-off at the bank’s next meeting.

Gold technical view

“Technically, the daily chart shows that the metal has set a lower low and a lower high, while the technical indicators are resuming their declines in oversold territory after a shallow upward correction, maintaining the risk towards the downside”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, a strongly bearish 20 SMA caps the upside around 1,094.50, now the immediate resistance, while the Momentum indicator corrected higher and stands around its 100 level, and the RSI indicator holds around 29”.

Bednarik locates next support levels at 1,085.40, 1,079.50 and 1,071.00, while she places resistances at 1,094.50, 1,100.10 and 1,109.20.
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Source:: FX Street