Yellow metal consolidates around $1210, holds firm to yesterday’s gains. Price remains capped by $1215 and supported above $1208.
Gold moved all day in a range between $1,208/oz and $1,215, around yesterday’s closing price. It consolidated Wednesday’s gains when it rose from $1200 to $1216, on the back of a slide in US yields.
Price action across financial market remained limited with the focus on UK political developments. The pound dropped sharply but other crosses move modestly. The greenback posted mix results and again ignored US economic data.
The yellow metal managed to post the third consecutive day of gains but did not trade above yesterday’s highs. The positive tone still prevails but in order to clear the way to more gains, it needs to break and hold on top of $1215.
XAU/USD Technical outlook
“The metal still offers a limited upward potential in its daily chart, as despite being in recovery mode, it's currently trading right below its 100 DMA, while technical indicators in the daily chart have bounced from their lows but hold well into negative ground and with limited upward strength”, said Valeria Bednarik, Chief Analyst at FXStreet.
According to her, the 4 hours chart, shows price hovering around a directionless 200 SMA for the last 24 hours, mid-way between the 20 and 100 SMA, while technical indicators lack directional strength, consolidating above their midlines.
Resistance levels are located at $1,216.55, $1,223.50 and $1,231.70. While on the flip side, support could be seen at $1,203.10, $1,191.20 and $1,182.75.
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