Gold reaches 3-week high

By FXStreet Spot gold surged to a fresh 3-week high of $1,258.66 an ounce on Monday, fueled by a weaker dollar and decreasing expectations of a US rate hike as the Fed remains dovish.

Gold for June delivery settled roughly 1.0% higher and trades around 1,256.20 ahead of the US close, barely below the mentioned daily high.

Gold technical view

“From a technical point of view, the commodity is poised to extend its advance, as in the daily chart the price has extended further above its 20 SMA, while the technical indicators head north well above their mid-lines, supporting some further gains for this Tuesday,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA has crossed above the 100 and 200 SMA well below the current level, whilst the Momentum indicator has turned lower within positive territory and the RSI indicator lost upward potential, but remains within overbought levels, suggesting the metal may consolidate before resuming its advance, particularly on a break above its daily high.”

Support levels: 1,252.05 1,241.90 1,233.70. Resistance levels: 1,258.90 1,266.90 1,271.80.
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Source:: FX Street