Gold has pushed even higher today after weaker data spurred on hopes for more QE. That tends to weaken the dollar and benefit gold. However,

  • The 100 day MA at 1667.90 has stalled the rally today
  • The price has consolidated over the last 5 or so hour with support eyed at 1661.80 area where the 38.2% of the last move higher is found (see 5 minute chart below). It is also where trendline resistance was broken on the daily chart (see chart above).

So traders have a decision to make –

  • Take another shot at pushing above the 100 day MA (the last two times failied) or
  • Push the price below the support and continue to trade in the range.

It seems like traders might defer that choice until next weeks begins. Keep these levels in mind.