Gold edges higher, hovers near 2-year high

Gold extended gains into a second straight day on Monday, although gains were modests after the rally to 2-year highs seen on Friday.

The yellow metal closed the New York session around $1,325.00 an ounce, underpinned by the risk-off environment amid political and economical turmoil on the back of the Brexit. However, things were quieter today, with the metal gaining roughly 0.8% after climbing almost 5% last Friday to a peak of $1,358 an ounce.

Gold technical view

“From a technical point view, the daily chart shows that the technical indicators have turned lower from near overbought levels,  but remain well above their mid-lines, whilst the 20 SMA maintains a strong upward tone well below the current level, all of which indicates that the downside remains  limited,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical picture is quite alike, as indicators consolidate within overbought levels, with no signs of turning lower, whilst the price holds far above its moving averages. The daily high was set at 1.335.56, the level to overcome to confirm a new leg higher for this Tuesday.”

Support levels: 1,318.20 1,306.80 1,296.30. Resistance levels: 1,335,60 1,342.60 1,356.10.