Gold edges lower as risk appetite improves

By FXStreet Gold prices retreated on Wednesday amid decreasing demand for safe-havens assets, as worldwide stocks pared losses on the back of positive Chinese data. Spot gold closed the day 0.5% lower around $1,223.00 an ounce.

Gold technical view

“The daily chart shows that the intraday recovery was again contained by selling interest aligned around a bearish 20 SMA, indicating an increasing bearish potential, in spite of the lack of downward momentum. Furthermore, the commodity has been developing between the boundaries of a descendant channel ever since topping at 1,283.50 this year, also suggesting an interim top has been set and that from now on, the bias is towards the downside,” said Valeria Bednarik, chief analyst at FXStreet. “Daily basis, the technical indicators have turned back south below their mid-lines, but remain above weekly lows. In the 4 hours chart, the bright metal presents a neutral stance, as the price has been moving back and forth around an horizontal 20 SMA, while the technical indicators head nowhere around their mid-lines.”

Support levels: 1,214.70 1.208.90 1,201.50. Resistance levels: 1,228.10 1.236.80 1,242.50.
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Source:: FX Street