Gold snaps 3-day losing streak

Gold prices posted tepid advances, with spot up but confined within Tuesday's range, and trading around $1,207.50 an ounce by the end of the US session.

The commodity snapped a 3-day losing streak as renewed buying interest surged on a retracement towards the 1,200 region. Investors are betting on a sharper recovery in the bright metal, as chances of multiple rate hikes in the US have diminished alongside with the country's growth ever since the December decision.

Gold technical view

“In the daily chart, the Momentum indicator continues retreating from overbought territory, while the RSI turned flat around 66 after correcting the extreme readings reached last week, suggesting the metal may resume its advance”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, however, the price is below a bearish 20 SMA, a couple of dollars above the current level, while the technical indicators have turned flat around their mid-lines, indicating additional technical confirmations are required”.

Support levels: 1,202.05 1,190.90 1,182.60. Resistance levels: 1,214.60 1,223.90 1,233.20.