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Gold holds near 2-week lows

FXStreet (Córdoba) - Gold prices fell again on Thursday, albeit the decline was limited compared to the previous days. Spot gold fell down to a daily low of $1,111.05, slipping on the back of improved risk sentiment during the first half of the day, and with investors still concerned over the possibility of a US rate hike, particularly after FED's Lacker said that a rate hike is possible in October, as strong consumer spending shows that the economy is ready for it.

Gold technical view


“Having recovered some ground before the closing bell, the daily chart for the commodity shows that the commodity posted a lower low and a lower high, extending its decline below its 20 SMA, whilst the Momentum indicator is flat around its mid-line and the RSI indicator anticipates additional declines, heading south around 42”, says Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the bearish potential is stronger, with the 20 SMA having extended its decline above the current level and below the 100 and 200 SMAs, the Momentum indicator turning south near oversold levels, and the RSI holding around 33”.

“The bright metal has a strong static support level around 1,109.20, and a break below it will likely fuel the decline, with investors pointing then for an approach to the low set at 1,071 this year”, Bednarik added.

Support levels: 1,109.20 1,093.50 1,085.10 Resistance levels: 1,118.90 1,126.00 1,132.40

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