Gold rises back above $1200 but remains neutral, moving sideways

Gold rebounds as the US Dollar retreat in the market despite higher US yields.
Price continues to move sideways between $1190 and $1210.

Matías Salord FXStreet

Gold benefited from US dollar weakness on Wednesday and rose modestly, also supported by risk appetite. It gained 0.3% over the day, rising back above $1,200/oz.

The yellow metal opened around $1,198 and peaked before the US session at $1,206, the highest level since last Friday but lost strength. It pulled back but managed to hold on top of $1,200. Near the end of the session was hovering around $1,203 holding a modestly positive tone but still within a range, with the dominant trend still pointing lower. Volatility continues to be limited with XAU/USD unable to move significantly away from the $,1200 zone.

Technical outlook

“With the metal still neutral according to the daily chart, where indicators remain horizontal around their midlines, and as the price keeps hovering around a flat 20 DMA and well below a bearish 100 DMA, this last at 1,235.60”, says Valeria Bednarik, Chief Analyst at FXStreet.

According to her, in the short-term, the 4 hours chart shows XAU/USD settled above a congestion of moving averages, all together in a $2 range, while technical indicators lost directional strength after entering positive territory, also offering a neutral stance. “A more solid advance past 1,208.75 could be an encouraging sign for bulls.”

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.

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