Gold Turns Lower as Dollar Strengthens
Gold prices surged at the beginning of the day, but the greenback’s
comeback seen during the American afternoon sent the commodity into the
red, with spot down to a fresh weekly low of $1,282.13 an ounce before
settling around 1,286.50.
The intraday decline was also blamed
on dull psychical demand from China and India, with overall physical
buying down 23.8% during the three months to March and compared to Q1
2015, down to 781 tons, from 1,025 tons last year.
Gold technical view
“Spot's
daily chart shows that the bright metal remains at its highest since
late January and well above a bullish 20 SMA, while the technical
indicators have lost upward strength and turned south, holding however,
near overbought territory,” said Valeria Bednarik,
chief analyst at FXStreet.com. “In the 4 hours chart, the commodity is
currently trading below a bullish 20 SMA, whilst the technical
indicators have turned flat around their mid-lines, following a
retracement from overbought territory, suggesting the latest decline has
been corrective. A break below 1,283.50, however, should lead to a
bearish continuation this Wednesday that can extend down to the
1,261/64.00 region”.
Support levels: 1,283.50 1,271.10 1,262.30 Resistance levels: 1,290.85 1,297.10 1,308.40.
