Gold begins to exceed its 100 hour moving average
Gold is trading at the session highs to begin European trading, up about 0.3%, with prices just above $ 1,718 at the moment.
The push after the Fed saw gold testing its MA at 100 hours (red line), but this level largely resisted with short-term resistance also around $ 1,718.
But as we begin the session today, buyers are looking to establish short-term control in a break above the 100-hour AD. Stand above that and the short-term bias becomes more bullish and there will be more conviction on a firm run above $ 1,718.
For today, the ECB will be the main target for gold despite the large number of data to come in European morning trade.
If the central bank provides more stimulus – although it is not supposed to – or communicates its intention to do so, it could give gold another chance to push higher towards the end of the week negotiation.
The Fed probably did its part yesterday by reaffirming that it would use the “full range of tools” to do more if necessary. Will the ECB follow with a “anything” approach?