Gold Reaches 3-Week High
Spot gold surged to a fresh 3-week high of $1,258.66 an ounce on Monday,
fueled by a weaker dollar and decreasing expectations of a US rate hike
as the Fed remains dovish.
Gold for June delivery settled
roughly 1.0% higher and trades around 1,256.20 ahead of the US close,
barely below the mentioned daily high.
Gold technical view
“From
a technical point of view, the commodity is poised to extend its
advance, as in the daily chart the price has extended further above its
20 SMA, while the technical indicators head north well above their
mid-lines, supporting some further gains for this Tuesday,” said Valeria Bednarik,
chief analyst at FXStreet. “In the 4 hours chart, the 20 SMA has
crossed above the 100 and 200 SMA well below the current level, whilst
the Momentum indicator has turned lower within positive territory and
the RSI indicator lost upward potential, but remains within overbought
levels, suggesting the metal may consolidate before resuming its
advance, particularly on a break above its daily high.”
Support levels: 1,252.05 1,241.90 1,233.70. Resistance levels: 1,258.90 1,266.90 1,271.80.
(Market News Provided by FXstreet)
