Gold extends losses; remains vulnerable

FXStreet (Córdoba) - Gold fell sharply on Thursday and posted its lowest level since February 2010 as commodities underperformed amid expectations the Fed remains on track to raise rates in December, even though Chair Yellen failed to provide a clear sign at today’s speech.

Gold hit a low at the $1,074 area before recovering a tad and settling around 0.4% lower at $1,081 an ounce.

Gold remains under pressure, having fallen eight out of the nine trading days of November and lost nearly 10% since mid October when it peaked around $1,190 an ounce.

Gold technical perspective

“The daily chart shows that the commodity erased half of its intraday losses, but maintains a strong bearish tone, as the 20 SMA extended further lower above the current level and the technical indicators maintain their bearish slopes in extreme oversold territory”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the price remains below a bearish 20 SMA, whilst the technical indicators have posted tepid bounces from oversold levels, but remain dip in the red and far from suggesting an interim bottom has been established”.

“The commodity seems poised to extend its decline towards fresh lows near $1,050.00 a troy ounce”, the analyst added.