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4 Jan 2016
Gold settles higher amid Middle East tensions, China’s concerns
FXStreet (Córdoba) - Gold prices rallied on Monday, underpinned by safe-haven demand amid renewed fears of a Chinese economic slowdown and mounting geopolitical instability in the Middle East.
Gold futures gained 1.4% and settled above $1,075 an ounce, its highest close in over a week, after reaching an intraday high of $1,083 an ounce.
Gold technical perspective
“The commodity however, remained within December's range and ends the day in the 1,075 region, with the 1 hour chart presenting a limited upward potential, as the Momentum indicator remains flat around its 100 level whilst the RSI indicator aims higher, but also within neutral territory. In the same chart the price continues moving back and forth around a horizontal 20 DMA, while the price stands well below the 100 and 200 DMAs”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator continues heading north near overbought readings, but the RSI indicator already turned south after reaching overbought territory, indicating some additional short term declines for the upcoming hours”.
Support levels: 1,071.20 1,066.10 1,059.30. Resistance levels: 1,083.40 1,088.90 1,093.50.
Gold futures gained 1.4% and settled above $1,075 an ounce, its highest close in over a week, after reaching an intraday high of $1,083 an ounce.
Gold technical perspective
“The commodity however, remained within December's range and ends the day in the 1,075 region, with the 1 hour chart presenting a limited upward potential, as the Momentum indicator remains flat around its 100 level whilst the RSI indicator aims higher, but also within neutral territory. In the same chart the price continues moving back and forth around a horizontal 20 DMA, while the price stands well below the 100 and 200 DMAs”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the Momentum indicator continues heading north near overbought readings, but the RSI indicator already turned south after reaching overbought territory, indicating some additional short term declines for the upcoming hours”.
Support levels: 1,071.20 1,066.10 1,059.30. Resistance levels: 1,083.40 1,088.90 1,093.50.