Gold consolidates near 6-day highs

By FXStreet Gold prices soared amid a broader run to safety, with spot gold rising to a fresh 6-day high of $1,243.20 an ounce. The bright metal was fueled by a sharp decline in European and American indexes, while FOMC’s minutes showing no urgency in rising rates also boosted speculative buying.

Gold technical view

“The daily chart for the commodity shows that the price is above its 20 SMA for the first time in over two weeks, but more relevant that it has also broken above the roof of the daily descendant channel that capped price since early March. In the same chart, the technical indicators are heading higher around their mid-lines, still not enough to confirm a stronger advance,” said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the technical indicators have lost upward momentum, but remain within bullish territory, whilst the 20 SMA has turned north well below the current level, supporting a continued advance on a break above the mentioned daily high, the immediate resistance.”

Support levels: 1,234.90 1,225.10 1,216.40. Resistance levels: 1,243.20 1,251.90 1,262.60.
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Source:: FX Street