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26 Apr 2016
Gold advances further as dollar weakens ahead of Fed verdict
Gold prices recovered further ground on Tuesday, with spot surpassing by a few cents Monday's high and ending the day around $1,242.00 an ounce.
The yellow metal has been unable to attract speculative interest so far this week, as investors remain sidelined ahead of the upcoming US Fed's decision this Wednesday, as gold has been largely correlated with the Central Bank's announcements.
Gold technical view
“Trading within Friday's range ever since the week started, the daily chart maintains a neutral stance, with the price still moving back and forth around a horizontal 20 SMA, and the technical indicators lacking directional strength within neutral territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, a slightly positive tone prevails given that the Momentum indicator heads north above its 100 level, whilst the RSI consolidates around 52. In this last time frame, the price is above its moving averages, but all of them are quite close and within a $5 range, a clear sign of the ongoing lack of directional strength.”
Support levels: 1,236.30 1,222.30 1,214.80. Resistance levels: 1,242.80 1,251.70 1,262.60.
The yellow metal has been unable to attract speculative interest so far this week, as investors remain sidelined ahead of the upcoming US Fed's decision this Wednesday, as gold has been largely correlated with the Central Bank's announcements.
Gold technical view
“Trading within Friday's range ever since the week started, the daily chart maintains a neutral stance, with the price still moving back and forth around a horizontal 20 SMA, and the technical indicators lacking directional strength within neutral territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, a slightly positive tone prevails given that the Momentum indicator heads north above its 100 level, whilst the RSI consolidates around 52. In this last time frame, the price is above its moving averages, but all of them are quite close and within a $5 range, a clear sign of the ongoing lack of directional strength.”
Support levels: 1,236.30 1,222.30 1,214.80. Resistance levels: 1,242.80 1,251.70 1,262.60.