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Spot gold has been stable around 1,630/50 in the last three trading days, down roughly $60.00 from its weekly high, but holding on to its long-term bullish trend. Valeria Bednarik, Chief Analyst at FXStreet, analyzes the yellow metal from a technical perspective.

Key quotes

“The weekly chat shows that technical indicators have reached overbought levels, where they are currently consolidating. Also, the commodity is developing far above bullish moving averages, with the closest being the 20 SMA, which stands at around 1,526.”

“In the daily chart, technical indicators have corrected extreme overbought conditions, and despite heading lower, they remain well above their midlines. The 20 DMA has extended its advance above the 61.8% retracement of the long-term slump between 2011 and 2015 at 1,585.98, while the larger MA picked up momentum below the shorter one.”

“The immediate support is the weekly low at 1,621.15, followed by 1,603.81 ahead of the mentioned Fibonacci level. Resistances this week come at 1,651.80 and 1,662.”