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4 Apr 2016
Gold edges lower, posts second daily loss in a row
Gold prices remained under pressure at the beginning of the week, with spot falling below $1,215 an ounce.
The daily decline was modest, as investors were unable to shrug-off the increasing uncertainty over the US economy, as a solid employment report followed an ultra-dovish stance coming from policy makers. Nevertheless, recent US positive data has weighed ons buyers’ mood, not yet ready to give up, but reluctant to add at current levels.
Gold technical view
“Having traded within Friday's lower range, the daily chart shows that the price continues to develop below a bearish 20 SMA that contained advances since mid March, while the technical indicators present limited bearish strength, but remain within negative territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price extended further below its moving averages, with the 20 SMA now heading sharply lower around 1,225.00, and the technical indicators accelerating lower below their mid-lines, favoring some further declines, particularly on a break below 1,208.90, Friday's low.”
Support levels: 1,214.70 1.208.90 1,200.00. Resistance levels: 1,222.70 1.231.90 1,240.30.
The daily decline was modest, as investors were unable to shrug-off the increasing uncertainty over the US economy, as a solid employment report followed an ultra-dovish stance coming from policy makers. Nevertheless, recent US positive data has weighed ons buyers’ mood, not yet ready to give up, but reluctant to add at current levels.
Gold technical view
“Having traded within Friday's lower range, the daily chart shows that the price continues to develop below a bearish 20 SMA that contained advances since mid March, while the technical indicators present limited bearish strength, but remain within negative territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price extended further below its moving averages, with the 20 SMA now heading sharply lower around 1,225.00, and the technical indicators accelerating lower below their mid-lines, favoring some further declines, particularly on a break below 1,208.90, Friday's low.”
Support levels: 1,214.70 1.208.90 1,200.00. Resistance levels: 1,222.70 1.231.90 1,240.30.