Gold loses shine

By FXStreet FXStreet (Córdoba) – Gold prices fell, with spot down to $1,125 a troy ounce by the end of the day. There were two main factors behind gold’s decline, being the first a long holiday in China, with diminished demand for safe-havens, and an ultra dovish ECB that boosted dollar’s demand during the European morning.

The metal latest advance was triggered by Chinese turmoil that partially interrupted the underlying bearish trend. This last, may resume this Friday if the US employment report boosts chances of a FED’s rate hike for this September, with spot most likely reaching fresh lows below $ 1,071 after September 17th.

Gold technical view

“Technically, the daily chart shows that the price has broken below its 20 SMA, whilst the technical indicators head sharply lower around their mid-lines, getting close to confirm additional declines”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the 20 SMA is slowly gaining bearish tone above the current price, whilst the technical indicators bounce near oversold levels, but remain below their mid-lines, maintaining the risk towards the downside”.

Support levels: 1,121.90 1,109.20 1,100.00. Resistance levels: 1,130.62 1,137,40 1,144.70.
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Source:: FX Street