Gold up for the day, but far from the highs

Gold prices are about to end the day higher, with modest gains of around 0.45% at $1,247. Earlier the value of the ounce peaked at $1,260.20 but failed to hold and pulled back, initially to $1,250; but then during the American session broke below and fell to $1,244.00.

The price gained momentum with some risk aversion and after the reports of the terrorist attack in Brussels. Afterwards, the yellow metal lost momentum and also a stronger US dollar favored the retreated.

XAU/USD technical outlook

“Bulls maintain the technical advantage, as the price continues consolidating near its recent multi-month high set around 1,283.50, with no signs that the trend will post a u-turn. Daily basis, the price failed to recover above a mild bullish 20 SMA, while the technical indicators have lost their bearish strength around their mid-lines, supporting some upcoming consolidation”, said Valeria Chief Analyst at FXStreet.

According to her, in the 4-hour chart, the price is a few cents below a bearish 20 SMA, while the technical indicators diverge around their mid-lines, in line with some consolidative moves, with no clear direction.