Gold ends lower but off monthly lows

Gold extended losses on Thursday, marking a fresh monthly low, as stocks mostly advanced despite  BoE decision to stay on hold as it hinted at further easing in August.

The yellow metal fell  to a low $1,320.13 an ounce before recovering slightly, but remains in the red daily basis.

Gold technical view

“Technically, the daily chart shows that the price is hovering around a major support, the 23.6% retracement of its latest rally that converges with a bullish 20 SMA. In the same chart, the Momentum indicator holds above its mid-line, but with no clear directional strength, whist the RSI indicator heads lower around 52, supporting a downward continuation,” said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price is standing a few pips below the 100 SMA that converges with the mentioned Fibonacci level, whilst the 20 SMA heads south around 1,342.35, providing a strong dynamic resistance. Technical indicators in this last time frame head  modestly higher within bearish territory, all of which maintains the upside limited.”

Support levels: 1,320.13 1,308.30 1,299.45. Resistance levels: 1,335.15 1,343.40 1,351.80.