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7 Sep 2015
Gold posts four daily loss in a row
FXStreet (Córdoba) - Gold prices edged lower this Monday, with spot down to $1,115.70 intraday before bouncing some.
The commodity slipped as China added more gold bullion reserves in August, extending the growth since end-June's restatement to 2.1%, even as broader reserves fell more than 10%, whilst reserves of foreign currencies fell by a record of $93B last month, as the PBoC intervened to support the Yuan by selling other currencies. Additionally, the bright metal is being weighed by the possibility of a US rate hike during the upcoming FED's meeting on September 17th.
Gold technical view
“Technically, the daily chart shows that the price has extended further below its 20 SMA, whilst the technical indicators head strongly lower below their mid-lines, as the price took one step further towards a critical support in the 1,109.20 price zone”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA gained a stronger bearish slope, now around 1,124.80, whilst the RSI indicator is barely bouncing from oversold readings and the Momentum indicator aims higher, but below the 100 level, rather reflecting the latest bounce than supporting an upward move”.
Support levels: 1,116.70 1,109.20 1,100.00. Resistance levels: 1,124.80 1,130.62 1,137,40.
The commodity slipped as China added more gold bullion reserves in August, extending the growth since end-June's restatement to 2.1%, even as broader reserves fell more than 10%, whilst reserves of foreign currencies fell by a record of $93B last month, as the PBoC intervened to support the Yuan by selling other currencies. Additionally, the bright metal is being weighed by the possibility of a US rate hike during the upcoming FED's meeting on September 17th.
Gold technical view
“Technically, the daily chart shows that the price has extended further below its 20 SMA, whilst the technical indicators head strongly lower below their mid-lines, as the price took one step further towards a critical support in the 1,109.20 price zone”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA gained a stronger bearish slope, now around 1,124.80, whilst the RSI indicator is barely bouncing from oversold readings and the Momentum indicator aims higher, but below the 100 level, rather reflecting the latest bounce than supporting an upward move”.
Support levels: 1,116.70 1,109.20 1,100.00. Resistance levels: 1,124.80 1,130.62 1,137,40.