24 Feb 2016
Gold trims daily gains as sentiment improves
Gold prices rose to a 2-week high of $1,253.25 a troy ounce as oil-led risk-off in the European equity markets saw investors run for cover under the yellow metal’s protective shadow. However, oil prices turned positive in the late US session following the EIA inventory data, which saw the metal trim gains and end the day around $1,235/oz, up 1% on the day.
Metal traders would continue to track oil prices ahead of the US durable goods orders release on Thursday.
Gold technical view
"From the technical viewpoint, the metal could head lower if prices breach 20-SMA in the 4 hours chart. The daily RSI is falling from the overbought region, which adds credence to the possibility of a bearish move", said Omkar Godbole, analyst at FXStreet. "However, the metal could be bought on dips, given the bullish RSI in the 4 hours charts and prices sitting well above the rising 20-SMA in the daily chart."
Support Levels: 1,222 1,215 1,198. Resistance Levels: 1,240 1,254 1,263.
Metal traders would continue to track oil prices ahead of the US durable goods orders release on Thursday.
Gold technical view
"From the technical viewpoint, the metal could head lower if prices breach 20-SMA in the 4 hours chart. The daily RSI is falling from the overbought region, which adds credence to the possibility of a bearish move", said Omkar Godbole, analyst at FXStreet. "However, the metal could be bought on dips, given the bullish RSI in the 4 hours charts and prices sitting well above the rising 20-SMA in the daily chart."
Support Levels: 1,222 1,215 1,198. Resistance Levels: 1,240 1,254 1,263.