The 100 day MA comes in at 1166.79. High extended to 1168.39
Gold has been a beneficiary of the sharp fall in global equities this week, and in the process, the yellow metal has ripped through some technical levels. Yesterday the pair moved above the 38.2% of the move down from the May high at 1116 area. and moved right up to a combination of resistance from a downward trend line and 50% retracement at 1154. Today, with follow through selling of equiites, gold broke through that resistance and extended to the next target at the 100 day MA (blue line in the chart below). The high for the day extended to 1168.39. The 100 day moving average comes in today at 1166.79..
The price has since backed off as traders took a breathe and stocks slowed the decline.
Support remains against the 50% and the underside of the broken trend line. Traders will look to that level to provide bullish/bearish clues (move below bearish/stay above bullish). If the global markets remain uneasy next weeks, the precious metal may have more to run with the breaking of the 100 day MA the next hurdle followed by the 200 day MA at the 1189.01 also on the radar.
Looking at the hourly chart, the correction off the high shows the move was still relatively minor compared to the surge higher this week. The buyers still remain in firm control. Until the price can get and stay below 1152-54, that picture will not change.
