Gold hovers below $1,200/oz

By FXStreet Gold prices traded within its recent range, for the most consolidating gains below the critical $1,200.00 level. Spot gold was around $1,193.00 an ounce ahead of the US close, having recovered from a low of set a $1,181.46, as risk aversion eased temporarily during the European session.

The bright metal retains the bullish tone seen on previous updates, as safe-haven demand joined forces with a weaker dollar.

Gold technical perspective

“The daily chart presents a bullish engulfing pattern that supports a break higher for the upcoming session. In the same chart, the technical indicators have eased somewhat, but are mostly consolidating in overbought territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has recovered from an early dip towards its 20 SMA, also supportive of a new leg higher, albeit the technical indicators have turned lower within positive territory, limiting chances of a rally in the short term, and as long as the price remains unable to break the high set at $1,200.90”.

Support levels: 1,191.45 1,184.10 1,175.05. Resistance levels: 1,200.90 1,208.65 1,219.60.
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Source:: FX Street