Gold surges above $1,100 an ounce

By FXStreet FXStreet (Córdoba) – Gold prices rallied on Wednesday, as a deterioration in market sentiment lifted the appeal of the metal as a safe-haven.

The spot reached a peak of $1109.54 an ounce during the American afternoon, although it retreated from session highs, inversely with a rebound in US stocks and oil. The metal was trading around $1,103 an ounce, up 1.47% on the day.

A weaker dollar on the back of soft inflation and housing US data, also helped to underpin the yellow metal.

Gold technical perspective

“Technically and according to the daily chart, additional gains are favored, given that the price is far above a bullish 20 DMA, while also overcome the 23.6% retracement of its latest bullish run a 1,099.90, now the immediate support. In the same chart, the technical indicators head north within positive territory, in line with the ongoing bullish tone”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart, the overall picture is also bullish, although the RSI indicator is losing some upward momentum near oversold territory, indicating some consolidation ahead before a new leg higher.”

Support levels: 1,099.90 1,092. 1,082,40. Resistance levels: 1,110.00 1,117.90 1,123.80.
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Source:: FX Street