Gold holds above $1,230 an ounce

By FXStreet Gold prices strengthened 1% on Thursday to $1,238 a troy ounce as the slide in Chinese stocks, oil price volatility and Brexit related fears kept the safe haven demand for the metal intact despite the rise in European and US equities.

However, the gains remained restricted at $1,243 levels after US Commerce Department data showed a sharp rise in the US durable goods orders in January. Metal remains at the mercy of oil price moves ahead of the preliminary US GDP release ahead of the weekend.

Gold technical view

“From a technical view, the rising 20-SMAs in the daily and 4 hours charts keep the bullish tone intact. However, daily RSI turning lower and repeated exhaustion on the part of bulls at/above $1,240 levels indicate gold could be sold on rallies”, said Omkar Godbole, analyst at FXStreet. “Overall, the metal appears due for technical correction, which may gain pace if prices dip below 20-SMA support in the 4 hours chart.”

Support levels: 1,228 1,217 1,212. Resistance levels: 1,240 1,253 1,263.
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Source:: FX Street