Gold price advances amid geopolitical risks

San Francisco (Nov 24)  Gold prices recovered some ground on Tuesday as increasing geopolitical concerns spurred demand for safe-havens after Turkey shot down a Russian jet near the Syrian border.

Gold spent most of the day in a range between $1,070 and $1,080 an ounce before settling barely below $1,075, up 0.73% on the day. The metal has staged a mild recovery after bottoming at a 5-year low near $1,064/oz last week.

Gold technical view

“Spot gold ends the day around $1,075.10 an ounce, and the daily chart shows that the 20 SMA maintains a strong bearish slope above the current level, while the Momentum indicator has corrected its oversold readings, but is currently losing upward strength below its 100 level, and the RSI indicator remains near oversold territory, limiting chances of an upward move”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is a few cents below a flat 20 SMA, while the technical indicators have lost their upward strength below their mid-lines, suggesting the latest recovery is just corrective in the middle of the dominant bearish trend”.

Support levels: 1,072.90 1,066.35 1,058.20. Resistance levels: 1,081.10 1,089.35 1,094.70.

Source: FXstreet