Gold ends sharply higher underpinned by safe-haven demand

By FXStreet FXStreet (Córdoba) – Risk aversion fueled gold demand, and spot extended up to a fresh 4-week high of $1.156.69 a troy ounce. Also, poor US Durable Goods Orders in the US supported the case for a FED’s rate hike delay towards December, encouraging gold buyers.

Having retreated somewhat at the end of the day, the commodity holds above $ 1,150.00 ahead of the Asian opening, with a strong positive tone.

Gold technical view

“Technically, the daily chart shows that the price has advanced well above its 100 DMA, currently at 1,140.10, whilst the technical indicators head sharply higher well above their mid-lines, supporting additional advances”, said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, the technical set-up also favors the upside, as the technical indicators are barely losing upward strength in overbought territory, but the price has accelerated sharply higher far above its 20 SMA, with scope to extend up to 1,170.00, August 24th daily high”.

Support levels: 1,1,147.90 1,142.50 1,135.60. Resistance levels: 1,156.70 1,163.30 1,170.01.
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Source:: FX Street