Gold saw gains stagnate yesterday just above $ 1,850 as price collided with a test of its 200-day moving average
The broken trendline support – now resistance – also acts as an additional layer of defense for the sellers for now, alongside the 38.2 retracement level of the swing movement lower to start the year at 1851. , $ 60.
Despite the strong rebound to just below $ 1,800, this is where buyers will really need to be brave to try and extend the upward momentum.
Otherwise, the recent rebound might prove to be a bit of a brief relief for gold, but at least it provides some indication of structural appetite overall.
Exploring the short-term chart:
Buyers are still in control in the short term as they stay above the 200 hour moving average (blue line), now at $ 1,833.06. Stay above that and the bias remains more bullish, but break below and sellers will start threatening a potential recovery again.
Fed Chairman Powell yesterday reiterated the same message that we have heard before since January so that the fundamentals at stake remain unchanged. Therefore, take a look at the technical levels highlighted above for a better idea of the next directional move for gold.