Gold prices fell for a third day in-a-row last Friday, weighed by a broadly stronger USD, and the lack of demand coming from Chinese investors, as local markets remained closed on holidays.
The commodity continues to show some weakness, having closed the week at $ 1,122.00 and the daily chart shows that the technical stance favors additional declines, given that the 20 SMA contained the upside at 1,132.84, while the Momentum indicator crossed its mid-line towards the downside, while the RSI indicator heads south around 46.
As per 4 hours forex technical analysis, the 20 SMA also heads lower above the current level, although the technical indicators have lost their bearish strength near oversold levels, and aim slightly higher, still in negative territory. The immediate support for this Monday comes at 1,116.70, Friday’s low, followed by 1,109.20 a strong static support. A break below this last is required to confirm additional declines towards the lows set last August at 1,071.00.