Gold reaches 3-week high

By FXStreet FXStreet (Córdoba) – Gold prices climbed to a fresh three-month high, with spot up to $1,128.85 an ounce. Chinese poor manufacturing readings spurred risk aversion ever since the day started, later fueled by tepid US figures, which led to a decline in stocks.

Falling oil prices also sent investors towards the safe-haven commodity that holds near its daily high by the end of the day.

Gold technical view

“The daily chart shows that the bright metal recovered back above its 200 DMA, while the RSI indicator anticipates further gains by heading higher around 66. In the same chart, the Momentum indicator holds steady well above its mid-line, but lacks directional strength as the price is within last week range”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that that the price has advanced above a bullish 20 SMA, while the technical indicators head north above their mid-lines, also in line with additional gains for the upcoming sessions”.

Support levels: 1,122.10 1,115.70 1,109.60. Resistance levels: 1,134.90 1,142.50 1,151.00.
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Source:: FX Street