Gold losses momentum during American sessions despite weaker US dollar. Metal remains bullish as US yields consolidate recent slide.
Gold peaked earlier today at $1,233/oz the highest level since July 26 but pulled back under $1,230 finding support around the $1,225 zone. Still was headed for the highest close in two months, with a gain of almost $10.
The yellow metal continued to move higher after last week breakout of a 7-week range. The positive tone remains intact. During the US session, gold pulled back possibly amid some profit taking after hitting the $1,230 area.
XAU/USD Technical outlook
“The daily chart shows that spot gold held above the 100 DMA, while technical indicators maintain a strong upward momentum, reaching fresh monthly highs near overbought readings”, says Valeria Bednarik, Chief Analyst at FXStreet.
In the 4 hours chart, Bednarik notes that technical indicators lost upward strength but hold near overbought readings, while the 20 SMA heads north almost vertically far below the current level, “indicating that there's room for further gains ahead, should the metal break above the mentioned daily high.”
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