Gold rebounds and rises to $1340 as USD slides
- Greenback erases gains, back under pressure.
- Gold rebounds almost $10 from lows.
The yellow metal recovered late in the US session amid a slide of the greenback across the board. Also, equity prices turned lower from record high levels. The Dow Jones was falling 0.05%, after falling more than 200 points from the highs.
Gold rose from 2-day lows at $1,331.80/oz to $1,340.15. Near the end of the day, it was hovering slightly below $1,340. It recovered the bullish tone but so far the upside remains capped by a short-term downtrend line from yesterday’s highs. A break higher would expose $1,342 and weekly highs at $1,345.
The retreat of gold was short-lived and signals that the bullish momentum remains intact, even after rising more than 8% since December 13.
Technical levels
To the upside, resistance levels could be seen at $1340 (Jan 16 high), $1345 (Jan 15 high) and $1350. To the downside, support levels might be located at $1331 (Jan 16 low), followed by $1322 and $1315 (Jan 11 low).
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
