Gold price retreats from highs and ends flat despite risk aversion
San Francisco (Mar 8) Gold started the day with a strong footing, but gave up its early gains and turned negative during the American session. Spot traded as high as $ 1,278.01, boosted by poor Chinese data. But despite the dominant risk-aversion mood in financial markets, the yellow metal edged lower afterwards, although it remained close to a 13-month high scored last week.
The yellow metal finished the nearly flat lower around $ 1,265.00 an ounce, after peaking at $1,279/oz. Last Friday, the metal reached its highest level of 2016 at $1,279.90 an ounce.
Gold technical view
“Technically, the daily chart shows that the 20 SMA is losing its upward strength, but continues heading higher around 1,233.70, while the RSI is turning lower from overbought levels, suggesting some downward corrective move for this Wednesday,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is breaking below its 20 SMA, whilst the technical indicators are heading lower around their mid-lines with strong bearish slopes, also supporting some additional declines.”
Support levels: 1,256.20 1,242.50 1,233.70 Resistance levels: 1,271.80 1,279.75 1,286.90.