Gold edges lower as dollar gains

By FXStreet FXStreet (Córdoba) – Gold prices continued trading in limited intraday ranges, with spot ending the day down and around $1,104.00 a troy ounce. Commodities have been pretty much flat this week, as investors are in wait-and-see mode ahead of Fed’s decision, speculating that if the central bank keeps rates on hold, precious metals may rally on relief, but if the Fed hikes, they will slump to fresh multi-year lows.

Gold technical view

“Spot technical picture remains bearish, with the daily chart showing that the price has fallen further below its moving averages, and that the 20 SMA accelerated lower, now offering a strong resistance around 1,123.80. In the same chart, the technical indicators head sharply lower below their mid-lines, supporting additional declines, particularly on a break below 1,098.70, last Friday’s low and the immediate support”, said Valeria Bednarik, chief analyst at FXStreet.

“In the 4 hours chart, the price remained capped by the 20 SMA, whilst the Momentum indicator turned lower around its mid-line and the RSI hovers without a clear direction around 39. The 1,109.20 price zone has prove being a strong resistance level in the past, so selling interest is expected to surge on approaches to it at …read more

Source:: FX Street