Gold finds support ahead of $1,100

By FXStreet FXStreet (Córdoba) – Gold prices plummeted this Wednesday, with spot gold down to a daily low of $1,101.22 a troy ounce, and ending the day around $1,108.00. The commodity initially fell on the back of risk appetite, with investors liquidating its safe-haven holdings in benefit of riskier assets.

But the decline accelerated during the American afternoon, as a better-than-expected minor jobs report, fueled speculation the FED may raise rates as soon as in its upcoming September 17th meeting.

Gold technical view

“Technically, the bearish potential has increased as the daily chart shows that the price extended further below its moving averages, whilst the Momentum indicator holds well below its 100 level, and the RSI indicator has accelerated lower, now around 38”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators have lost their bearish strength, but remain well into negative territory, with the RSI steady around 23, and the 20 SMA heading sharply lower well above the current level, all of which supports additional declines, particularly on a break below the mentioned daily low”.

Support levels: 1,101.20 1,094.80 1,082.60. Resistance levels: 1,109.20 1,116.70 1,124.50.
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Source:: FX Street