Gold falls sharply as dollar extends gains

By FXStreet Gold prices turned south this Thursday as the dollar extended gains. Spot gold fell down to $1,224.25 an ounce and trades around $1,225.90 by the end of the US session.

The bright metal reached a 3-week high of $1,262.62 on Tuesday, from where it started to retreat to enter negative territory weekly basis, as an increase in risk appetite led investors to trim positions in low-yielding assets.

Gold technical perspective

“Holding near its daily low, the daily chart shows that the commodity ended the day below its 20 SMA, whilst the technical indicators turned sharply lower and entered negative territory, indicating an increasing bearish potential,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, and according to the 4 hours chart, the technical indicators have partially lost bearish strength near oversold levels, but by no means suggest an upward upcoming move, whilst spot has fallen below all of its moving averages, also implying a downward continuation for this Friday.”

Support levels: 1,223.05 1,214.60 1,206.40. Resistance levels: 1,229.70 1,240.60 1,250.50.
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Source:: FX Street