Gold holds near 3-month highs

FXStreet (Córdoba) - Gold prices advanced during the New York session amid increasing demand for safe havens, although the upside was capped by a 3-month peak of $1,130 an ounce. Having pulled back from over the last hours, spot finished the day around $1,127, virtually unchanged, after two consecutive daily gains.

Gold technical view

Indicators point to increasing upward momentum of the bright metal, and support an even stronger rally. “Daily basis, the 20 DMA is crossing above the 100 DMA, supporting the positive bias, although the technical indicators have turned flat, well above their mid-lines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price recovered sharply on an approach to a bullish 20 SMA, but the technical indicators are also losing upward strength within positive territory. This 20 SMA stands at 1,120.80, and as long as the level holds, the downside will remain limited, while the price needs to extend beyond 1,134.90 to confirm a new leg higher”.

Support levels: 1,120.80 1,115.70 1,109.60. Resistance levels: 1,134.90 1,142.50 1,151.00.