Gold rises on geopolitical tensions. However, the analysts at ADS Securities advise not to get fooled by the spikes in gold – they eye a bearish momentum.
Gold rises on geopolitical tensions
As of now, Gold is trading with a negative bias on the 1H chart, indicating the presence of bearish momentum in the near term. Likewise, a possible signal line crossover by the MACD indicator from above further elaborates the above stance. Important support to be watched is located at the $1265 where EMA 55 is trading, followed by the $1263 and psychological $1260 levels.
A breach below the latter might confirm the bearish trend in the yellow metal. On the bright side, key resistance is placed at the $1270 level, followed by the $1273 and $1277 levels. A break above the latter might lead to further acceleration to the upside.
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