#Gold Technical Analysis# 24K99 news: In the Asian session on Tuesday (June 11th), spot gold suddenly and quickly fell short-term, and the price of gold is falling towards the $2,300/oz mark. Valeria Bednarik, chief analyst at FXStreet, analyzed the technical prospects of gold in an article.
(Source: 24K99) 15-minute chart for spot gold.
Bednarik pointed out that the price of gold rebounded from below $2,300/oz on Monday, but the trend of gold prices is still biased towards downward risk.
Spot gold closed up $17.07 on Monday, up 0.74%, to $2,310.81/oz.
Phillip Streible, Chief Market Strategist at Blue Line Futures, believes that gold prices seemed to be oversold last Friday, and therefore attracted buying bids at the dip.
Spot gold closed sharply down $82.09 last Friday, down 3.46%, with gold prices at $2,293.74/oz.
Short-term technical outlook for gold
Bednarik said that the daily chart of gold shows that the price of gold is at the low end of last Friday's trading range, and the risk is still biased towards downward. Technical indicators only rebounded moderately from readings close to oversold, and do not have enough strength to predict that gold prices will rise again. At the same time, gold prices are traded below the 20-day simple moving average (SMA), while the longer-term moving average remains far below the current level and is tilted upwards.
Bednarik added that in the short term, according to the 4-hour chart, the technical outlook is very similar. Technical indicators are correcting the oversold condition, but they are still in the negative zone, and the upward strength is limited. At the same time, the price of gold is below all its moving averages, and the 20-period SMA receives downward traction from the longer-term moving average, limiting the possibility of a significant rebound in gold prices.
(Spot gold 4-hour chart source: FXStreet)
Bednarik gave the latest important support and resistance levels for the gold price:
Support: $2,300.00/oz; $2,286.60/oz; $2,272.90/oz
Resistance: $2,315.50/oz; $2,328.40/oz; $2,342.35/oz
At 10:11 Beijing time, spot gold reported $2,300.31/oz.