Gold recovers ground on weaker dollar

Gold prices advanced modestly on Wednesday as the dollar weakened across the board while political uncertainty continues to underpin the metal. Gold closed up 0.6% at $1,343.70 an ounce, after briefly dipping to 1,327.51 earlier during the Asian session.

Gold technical view

“Technically, the daily chart shows that the price recovered after testing a strongly bullish 20 SMA, while also held above the 23.6% retracement of the latest bullish run. In the same chart, the Momentum indicator is bouncing from its 100 line, while the RSI indicator heads north around 57, favoring additional recoveries for this Thursday,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term and according to the 4 hours chart, technical indicators recovered from oversold readings, but lost upward strength within negative territory, whilst the price continues developing below a mild bearish 20 SMA, currently at 1,350.70, the level to surpass to confirm a steeper recovery.”

Support levels: 1,335.15 1,327.60 1,318.40 Resistance levels: 1,350.70 1,357.70 1,365.90.