Gold recovers after 8-day losing streak but holds near 3-month lows

By FXStreet FXStreet (Córdoba) – Gold managed to recover slightly from a 3-month low scored post-nonfarm payrolls last Friday near $1,085 an ounce. The pair climbed to a peak of $1,095.69 but failed to hold at highs and retraced most of its intraday gains.

Still, the commodity managed to snap an 8-day losing streak, albeit the shallow intraday recovery suggests bears remain in the driver seat.

Gold technicals suggest downside risks prevail

“Technically, the recent upward corrective move has hardly modified the technical outlook, as in the daily chart, the price is far below its moving averages, whilst the technical indicators have turned flat, but remain in extreme oversold territory, not yet confirming an upward corrective move”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term, the 4 hours chart shows that the RSI indicator has corrected the extreme readings reached last week, but remains below 30, whilst the Momentum indicator is also deep in the red and the 20 SMA heads lower around 1,100.10, all of which maintains the risk towards the downside”.

Bednarik locates next support levels at 1,085.40, 1,079.50 and 1,071.00, while she sees resistances at 1,100.10, 1,109.20 and 1,116.40.
For more information, read our latest forex news. …read more

Source:: FX Street