Gold climbs above $1,240 an ounce

By FXStreet Gold prices surged on Wednesday, with spot erasing all of its previous day’s losses to close the day above $1,240.00 an ounce.

A softer greenback has helped the bright metal to recover ground, alongside with bargain hunting, as speculators have been quickly buying on dips. Continued market turmoil and concerns over global economic growth have given the commodity reasons to recover, but the ongoing bullish trend is beyond safe-haven demand, part speculative, part a natural trend after gold fell to production cost.

Gold technical perspective

“Spot fell down to 1,224.72, approaching its daily 20 SMA, a dynamic support that has been steadily producing sharp bounces. In the same chart, the technical indicators have resumed their advances within positive territory, supporting some further gains for this Thursday,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the price is above a horizontal 20 SMA while the technical indicators present tepid bullish slopes above their mid-lines, maintaining the risk towards the upside, but lacking strength.”

Support levels: 1,234.90 1,226.10 1,216.50 Resistance levels: 1,244.05 1,251.90 1,260.00.
For more information, read our latest forex news. …read more

Source:: FX Street