Gold: a period of consolidation playing out at key lows, daily RSI in oversold territory

• Gold has been stabilising at the 10-hr SMA in late NY and the early hours of Asia after supply left the bearish trend intact in the European session forcing the less committed bulls out of the way, with the price moving in below Dec 2017 lows down at $1,236.45/oz.

Gold scored a low of $1,221/oz in European trade. However, DXY was closing in the lower end of the 94.9580-95.4070 range on Wednesday in NY.  Gold, therefore, recovered back to $1,228.43, closing NY at $1,227.47/oz.  

US data / events

On the data front, the housing data was a big disappointment, with the US housing starts posting a steep 12.3% decline in June. However, there was once again an upbeat assessment of the economy by Fed Chairman Jerome Powell who reiterated much of his statements made yesterday, in his last testimony in front of congressional lawmakers. The Fed’s Beige Book revealed a domestic economy that has rapidly expanded.

Golden cross continues to play out

The price is in a whisper of correction territory (10%) since the start of this year up at $1,362.90/oz, 9.9% off although technicals lean bearish and the price is below the key descending 10-D SMA at $1,245/oz within the golden death cross that is keeping the pressures on, (the 50-D SMA moving average for gold prices is falling below its longer-term 200-D SMA moving average).  

Gold levels

Technical lean bearish although playing with caution with respect to the RSI on the daily sticks, now in oversold territory. Supports are at $1,226/oz  and $1,221/oz. Below there, $1,204/$1,195 are key. Key resistances through $1,236 previous lows and then $1,248 recent highs look to be $1,268/oz, $1,272.70/oz, $1,276/oz (Jun. 20 high) ahead of $1300/oz (psychological level) and $1,302/oz within in a wider $1,235-$1,272.70/oz range.