Bounced off trend line support
The price of gold is lower for the 3rd day in a row, moving to an intraday low of $1692.59. The current price is at $1707. The high price reached $1714.49.
Technically today – after holding above the 200 hour MA yesterday – that MA was broken on the way to the session low. However, momentum could not be sustained and price action for most of the day was above and below that 200 hour MA (currently at $1705.44). On the downside, a lower trend line at $1691 held support which helped to stabilize the market and lead to the rebound. That trend line currently comes in at $1694 and will be a key bias defining level going forward.
Although trend line support held (bullish), what the traders have not been able to do is get back above the 100 hour MA at $1717.82 (blue line). If the buyers are to take more control, getting and staying above the 100 hour MA will be needed. That would open the door for a retest of the highs in April at $1738.70 level and then $1747.36. Getting above those levels will take the price to the new highs going back to November 2012. From there, the high price from 2012 at $1796.08 would be targeted.
Conversely, if the price can’t trend back higher, and the lower trend line on the hourly is broken (at $1694 currently), the lows from last week will be eyed at $1672.27 and then $1659.55. The 38.2% of the move up from the March 16 low comes in at $1634.36. Below that level and selling would likely intensify.
SUMMARY: For now, although the price is lower for the 3rd day in a row, both the buyers and sellers can claim some control.