Commodities

Technical Analysis – Gold advances to fresh 1-month high; indicators signal more gains

Posted on December 3, 2018 at 9:09 am GMT

Melina Deltas, XM Investment Research Desk

Gold has advanced considerably, jumping to a fresh one-month high of 1232 earlier today. The price successfully surpassed the moving averages, which are ready to post a bullish crossover in the 4-hour chart. Furthermore, the RSI indicator is approaching overbought territory, while the MACD oscillator climbed above the trigger line, both suggesting more gains.

More upside movements could send prices towards the next immediate resistance of 1236, identified by the highs on November 7, while even higher the area around 1239 could attract attention as well. Rising above this region the yellow metal could hit the three-month high of 1243.

On the other side, a bearish tendency would drive prices until the bullish crossover, within the 20- and 40-simple moving averages (SMAs) around 1222, before being able to re-challenge the 1217 support level. If the market fails to hold above these levels, the yellow metal could meet support at 1211, where it bottomed on November 28.

Concluding, gold prices remain above the rising trend line, which has been holding since August 16 and is trying to post significant gains in the short-term.

commodities gold

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