Gold advances amid safe-haven demand

Gold prices advanced on Tuesday on safe-haven demand triggered by renewed concerns on global growth. The bright metal staged a nice comeback as equities plummeted worldwide, with spot gold reaching a daily high of $1,236.80 an ounce during the European session, as tepid growth figures in the EU and the UK spurred concerns during London trading hours.

The commodity, however, retraced partially as Wall Street pared losses, ending the day around $1,228.50/oz.

Gold technical view

“The daily chart shows that the commodity was once again contained by a bearish 20 SMA, currently around the mentioned daily high, whilst the technical indicators have turned back higher, but remain within bearish territory,” said Valeria Bednarik, chief analyst at FXStreet. “In the shorter term, and according to the 4 hours chart, the pair presents a limited upward potential, given that the price is developing above a horizontal 20 SMA, while the Momentum indicator heads north within positive territory, but the RSI indicator already turned south and stands around 52, indicating the commodity may resume its decline, particularly on a break below 1,222.70, the immediate support.”

Support levels: 1,222.70 1,214.70 1.208.90. Resistance levels: 1.236.80 1,242.50 1,251.90.