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23 Feb 2016
Gold edges lower but holds above $1,200/oz
Gold fell by more than 2% on Monday to a low of $1,201 a troy ounce as the rally in the oil prices led investors to switch from safe haven metal to riskier assets. The rise in the USD index further added to the bearish pressure on the yellow metal.
Gold technical view
"The metal finished the day lower around $1,207 and according to the 4 hour chart the downside stands exposed as RSI is bearish at 44 levels and the prices trades below 20-SMA", said Omkar Godbole, analyst at FXStreet. "In the daily chart, the indicator is extending the decline that began from the overbought territory but the 20-SMA is rising and thus could ensure the downside is limited around $1,190 levels. Overall, the downside is favoured unless a break above $1,218 leads to RSI moving above 50.00 levels".
Support levels: 1,190 1,182 1,175. Resistance levels: 1,218 1,226 1,235.
Gold technical view
"The metal finished the day lower around $1,207 and according to the 4 hour chart the downside stands exposed as RSI is bearish at 44 levels and the prices trades below 20-SMA", said Omkar Godbole, analyst at FXStreet. "In the daily chart, the indicator is extending the decline that began from the overbought territory but the 20-SMA is rising and thus could ensure the downside is limited around $1,190 levels. Overall, the downside is favoured unless a break above $1,218 leads to RSI moving above 50.00 levels".
Support levels: 1,190 1,182 1,175. Resistance levels: 1,218 1,226 1,235.