Gold recovered some ground on Tuesday, ending the day slightly higher at
$1,075 an ounce while investors adopt a cautious stance ahead of the
Federal Reserve decision on rates next week.
Despite the recent recovery, the yellow metal trades near its lowest in more than five years on speculation the Fed will decide to raise rates for first time in nearly a decade, with upward corrective movements attracting selling interest and resulting in lower lows.
Gold technical perspective
“At the time being, the daily chart presents a neutral stance, as the commodity is stuck around a flat 20 SMA, while the technical indicators hover around their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “For the shorter term, the 4 hours chart shows that the price is hovering around a bullish 20 SMA, but that the technical indicators have turned south around their mid-lines, increasing chances of a downward move on a break below 1,071.10, the immediate support.”
Support levels: 1,071.10 1,065.40 1,057,30. Resistance levels: 1,082.60 1,089.40 1,098.10.
Despite the recent recovery, the yellow metal trades near its lowest in more than five years on speculation the Fed will decide to raise rates for first time in nearly a decade, with upward corrective movements attracting selling interest and resulting in lower lows.
Gold technical perspective
“At the time being, the daily chart presents a neutral stance, as the commodity is stuck around a flat 20 SMA, while the technical indicators hover around their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “For the shorter term, the 4 hours chart shows that the price is hovering around a bullish 20 SMA, but that the technical indicators have turned south around their mid-lines, increasing chances of a downward move on a break below 1,071.10, the immediate support.”
Support levels: 1,071.10 1,065.40 1,057,30. Resistance levels: 1,082.60 1,089.40 1,098.10.
