Gold ends the day lower

Gold prices retreated further on Monday, as sentiment improved and investors decided to get rid of safe-havens amid hopes of further stimulus and following a strong US jobs report last Friday.

The yellow metal slid from an early high of $1375.11 an ounce down to the current 1,341.50 area, losing around 1% on the day.

Gold technical view

Valeria Bednarik, chief analyst at FXStreet notes that today’s movement seems just corrective, as in daily chart indicators retreated sharply from overbought levels , but remain within positive territory, whilst the price holds well above its moving averages that hold their bullish slopes. “The 20 SMA in the mentioned time frame, stands at 1,325.45, and it would take some extension below it to consider a change in the dominant bullish trend,” said the analyst.

Support levels: 1,350.70 1,335.15 1,325.45 Resistance levels: 1,361.25 1,375.10 1,383.90