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25 Apr 2016
Gold edges higher on weaker dollar
Spot gold posted a modest gain on Monday, having advanced up to $1,242.23 an ounce before settling around $1,237.00, as broad dollar weakness and stocks soft tone supported demand for the safe-haven asset.
Trading, however, was lackluster as investors remained sidelined ahead of the Fed's monetary policy decision on Wednesday.
Gold technical view
“Set to consolidate further, the daily chart presents quite a neutral stance, as the technical indicators hover around their mid-lines, whilst the price is stuck around an horizontal 20 SMA. Also, the price remains above, but getting closer, to a daily ascendant trend line coming from February 10th low at 1,181.46, today around 1,222.30, the level to break to confirm a steeper decline,” said Valeria Bednarik, chief analyst. “In the 4 hours chart, the price failed to advance above its moving averages, with the 20 SMA maintaining a strong bearish slope and offering a dynamic resistance around 1,242.80, whilst the technical indicators have recovered partially within bearish territory, but turned flat, lacking directional strength.”
Support levels: 1,2223.00 1,214.80 1,206.90 Resistance levels: 1,242.80 1,251.70 1,262.60.
Trading, however, was lackluster as investors remained sidelined ahead of the Fed's monetary policy decision on Wednesday.
Gold technical view
“Set to consolidate further, the daily chart presents quite a neutral stance, as the technical indicators hover around their mid-lines, whilst the price is stuck around an horizontal 20 SMA. Also, the price remains above, but getting closer, to a daily ascendant trend line coming from February 10th low at 1,181.46, today around 1,222.30, the level to break to confirm a steeper decline,” said Valeria Bednarik, chief analyst. “In the 4 hours chart, the price failed to advance above its moving averages, with the 20 SMA maintaining a strong bearish slope and offering a dynamic resistance around 1,242.80, whilst the technical indicators have recovered partially within bearish territory, but turned flat, lacking directional strength.”
Support levels: 1,2223.00 1,214.80 1,206.90 Resistance levels: 1,242.80 1,251.70 1,262.60.