Since
the beginning of October gold broke through 1300 area, but shortly afterwards
retreated below the 200-day simple moving average, which is currently located
at 1265. As it is clearly seen on the daily chart this line has not been
crossed since February. That’s why we should take on consideration the
importance of the yearly rally of the yellow metal.
RSI is showing oversold market and almost is touching the 30 level now. The stochastic is indicating an oversold
market as well, but however is displaying lack of momentum.
Support now is located at 1084, 1040 and 1005. Resistance is seen at 1190, 1252
and 1307.
In short, if gold price is not able to push above 1265 (200-day SMA), most
likely will follow a test of 1200 area. Before that a consolidation phase is
expected, confirmed by the indicators.
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