Gold reaches $1,300 an ounce

Spot gold reached $1300.00 an ounce for the first time in 15 months, posting a 22% gain year-to-date. Gains in the commodity have been supported by well different reasons as during the first quarter, gold ran on a flight to safety due to fears of a global economic slowdown. But as conditions, and therefore sentiment improved, the bright metal continued gaining, underpinned by a weaker dollar and the Fed delaying a rate hike.

Now trading around $ 1,290.70/oz, spot gave back all of its daily gains, but remains above March high of 1,283.50, the level to break to see a deeper downward corrective movement beyond some intraday profit taking.

Gold technical view

“From a technical point of view, the daily chart shows that the price remains well above its moving averages, and the daily ascendant trend line that led the advance since early February. The technical indicators in the mentioned time frame are retreating partially from near overbought readings, but are still far from suggesting a stronger downward move”, said Valeria Bednarik, chief analyst at FXStreet. “Shorter term and according to the 4 hours chart, the corrective movement can extend towards the mentioned support, as the technical indicators turned south in extreme overbought levels and maintain their bearish slopes, whilst the price also develops well above its moving averages, indicating limited scope for declines.”

Support levels: 1,283.50 1,271.10 1,262.30 Resistance levels: 1,297.10 1,308.40 1,319.25