Gold hovers near 5 ½-year lows

FXStreet (Córdoba) - Gold prices fell to fresh 5 ½-year lows following the release of strong US employment data, which supported the case for Fed rate hike later this month. Comments from Federal Reserve Chair, Janet Yellen during the afternoon gave the greenback additional tailwinds, and sent gold to its lowest level since February 2010 near $1,050 an ounce.

Gold technical view

“The daily chart shows that the price erased all of its previous weekly gains, rejected by a strongly bearish 20 SMA, while the technical indicators have resumed their declines below their mid-lines, with the RSI now nearing oversold levels, but supporting further declines”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price has broken below a bearish 20 SMA while the technical indicators present bearish slopes below their mid-lines, in line with the longer term view”.

Support levels: 1,050.55 1,043.60 1,035.00. Resistance levels: 1,057.28 1,067.50 1,075.50.