Gold stages modest recovery

By FXStreet FXStreet (Córdoba) – Gold prices had little to offer this Monday, with spot closing the day barely $1 above its Friday’s close, a few cents below the $1,109.00 level.

Despite risk aversion dominated market’s mood during the first half of the day, the metal remained subdued, as investors fear a FED’s rate hike later this week, will signal a slump in the price of gold.

Gold technical view

“Technically, the commodity at least stalled its latest decline, posting a higher low daily basis, albeit the bearish tone seen on previous updates remains intact, as in the daily chart, the 20 SMA turned sharply lower above the current level, whilst the technical indicators continue heading south below their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical stance is neutral-to-bearish, with the indicators turning slightly lower around their mid-lines, and the price hovering around its 20 SMA that lacks directional strength a few cents below the current price. Additional declines are seen on a downward acceleration through the 1,100 figure, eyeing then a decline down to 1,089.30 a strong static support”.

Support levels: 1,106.50 1,098.70 1,089.30. Resistance levels: 1,111.60 1,124.50 1,131.80.
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Source:: FX Street