Gold price edges lower, but ends above $1,250/oz
San Francisco (Mar 9) Gold prices eased during the past trading sessions, with spot closing in the red around $1,254.00 an ounce after being as low as $1,242.90. The commodity corrected lower amid a firmer tone in EU and US stocks and some profit taking ahead of the ECB's decision, after the bright metal failed to break above its recent 2016 highs.
The movement can be consider corrective at this point, hardly significant compared to the $200 almost straight advance.
Gold technical view
“Technically, the daily chart shows that the decline was halted well above a bullish 20 SMA, currently around 1,236.00, while the Momentum indicator aims slightly higher well above the 100 level and the RSI indicator having turned south, around 62, all of which shows limited chances of a strong downward move,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term however, the risk has turned lower, as in the 4 hours chart, the 20 SMA is turning south above the current level, while the technical indicators head firmly lower within bearish territory, in line with a continued decline, particularly on a break below the mentioned daily low.”
Support levels: 1,242.90 1,236.00 1,227.30 Resistance levels: 1,258.90 1,265.10 1,271.30.