Gold suffers sharp monthly loss

By FXStreet FXStreet (Córdoba) – Gold prices recovered ground at the beginning of the week, posting its first gain in three sessions, but recorded a sharp monthly loss as investors continue to price in a Federal Reserve lift-off.

Being the last day of the month, some traders decided to book profits ahead of the December US Central Bank meeting, whilst also some speculators found it interesting to buy at current low levels. The yellow metal was trading up 0.84% on the day around $1,065 an ounce. Nevertheless the metal remains near a 5 ½-year low struck at $1,052 last Friday, having lost nearly 7% over the month.

Gold technical view

“The bearish trend remains in place, as the daily chart shows that the price is well below its 20 SMA, whilst the RSI indicator is barely recovering from oversold levels, and the Momentum indicator also aims higher, but below its 100 level, all of which reflects the latest upward corrective move but fails to suggest further gains”, said Valeria Bednarik, chief analyst at FXStreet.

Support levels: 1,060.30 1,052.70 1,045.10. Resistance levels: 1,068.90 1,075.50 1,082.50.
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Source:: FX Street