Gold trims previous session losses

By FXStreet FXStreet (Córdoba) – Gold prices recovered some ground Wednesday, with spot gold up around $10.00 by the US closing bell. The commodity recovered alongside with the EUR, unable however, to revert all of its Tuesday’s losses.

Gold technical view

“The daily chart shows that gold bounced from its daily 20 SMA that is containing the downside around 1,122.40, whilst the technical indicators are posting tepid bounces from their mid-lines, but lack enough strength to support a continued advance”, says Valeria Bednarik, chief analyst at FXStreet. “In the same chart, the 100 SMA heads sharply lower above the current level, containing the upside around 1,140.60”.

“Shorter term, the 4 hours chart shows that the price is finding some resistance around its 20 SMA whilst the Momentum indicator recovered up to the 100 level, but is not yet extending above it, whilst the RSI has turned flat around 55, suggesting limited upward potential at the time being, as long as below the mentioned 1,140.60 level”, Bednarik adds.

Support levels: 1,1290.90 1,121.30 1,109.20. Resistance levels: 1,135.60 1,140.60 1,147.90.
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Source:: FX Street