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23 Feb 2016
Gold gains more than 1%
Gold prices advanced more than 1% to $1,227 a troy ounce as the decline in oil prices and the resulting risk aversion in the equities triggered a flight to safety. The weakness in the treasury yields also added to the bullish tone around gold prices.
Gold technical view
"The metal finished the day around $1,222/oz which is above 20-SMA in the 4 hour chart. In the daily chart, the RSI continues heading lower from overbought territory, indicating short-term bearish potential", said Omkar Godbole, analyst at FXStreet. "However, the rising 20-SMA in the daily along with the bullish RSI in the 4 hour chart and the closing above 20-SMA indicates the commodity is likely to be bought on dips. Overall, the upside is favoured unless a break below $1,218 leads the RSI moving below 50.00 levels."
Support levels: 1,190 1,182 1,175. Resistance levels: 1,226 1,235 1,251.
Gold technical view
"The metal finished the day around $1,222/oz which is above 20-SMA in the 4 hour chart. In the daily chart, the RSI continues heading lower from overbought territory, indicating short-term bearish potential", said Omkar Godbole, analyst at FXStreet. "However, the rising 20-SMA in the daily along with the bullish RSI in the 4 hour chart and the closing above 20-SMA indicates the commodity is likely to be bought on dips. Overall, the upside is favoured unless a break below $1,218 leads the RSI moving below 50.00 levels."
Support levels: 1,190 1,182 1,175. Resistance levels: 1,226 1,235 1,251.