Gold rises sharply, reverses weekly losses

By FXStreet Gold resumed its advance this Thursday, with spot around $1,235.00 an ounce by the end of the US session. The bright metal has erased most of its weekly losses, indicating the dominant bullish trend remains firm in place, and that the latest decline has been merely corrective, with higher highs beyond $1,260 at sight.

The sharp intraday advance is also saying that bargain hunting will likely surge on downward moves, as long as US data remains tepid, and therefore maintains the Fed on hold.

Gold technical perspective

“Technically, according to the daily chart, further gains are to be expected, given that the indicators have resumed their advances after correcting extreme overbought readings, while the 20 SMA has extended to the upside, currently standing around 1,175.00”. said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price accelerated higher after breaking through its 20 SMA, while the RSI indicator heads north around 62, supporting the longer term perspective, particularly on a break above 1,242.30, the immediate resistance”.

Support levels: 1,222.50 1,214.50 1,202.05. Resistance levels: 1,242.30 1,251.90 1,263.40.
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Source:: FX Street