Gold closes at 2-week high

By FXStreet FXStreet (Córdoba) – Gold rallied on Monday, with spot adding over $15.00, ending the day near $1,080.00 an ounce, its highest level in two weeks.

The commodity benefited from a weaker dollar, although selling into strength is still seen as the more profitable choice, given that the greenback’s outlook remains constructive in the longer term after the Fed finally decided to raise rates for the first time in almost a decade.

Thin market conditions, however, will be the main theme this days and sudden, unjustified moves, should not be ruled out in financial markets.

Gold technical view

“From a technical point of view, the daily chart shows that the price has advanced above its 20 SMA and a short term descendant trend line, coming from December high, but that the technical indicators lack clear directional strength around their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the upward momentum prevails, as the technical indicators grind higher, despite being near overbought levels, while the price advance above all of its moving averages, supporting further gains on a break above 1,082.40 the immediate resistance”.

Support levels: 1,075.90 1,064.60 1,058.40. Resistance levels: 1,082.40 1,088.90 1,096.50.
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Source:: FX Street