As markets are still digesting the aftermath of the Fed decision yesterday, gold is finding it rough to stay afloat as Treasury yields are continuing to hold up. Gold had previously found support from its 100-day moving average (red line) in recent weeks but that level appears to be giving way now.
And from a technical perspective, that will be a massive blow to buyers in trying to maintain their resolve of searching for a rebound after the fall since May.
A firm break and hold below the key technical support above frees up the path towards testing $1,900 next before sellers may start to search for a push towards the 200-day moving average (blue line).
As mentioned previously, I'm still a firm advocate of staying bullish in gold in the long-term but I like the thought of a deeper pullback to find more attractive opportunities in this space. Patience is key. And all else being equal, a push back towards the 200-day moving average would definitely get the bulls salivating again I would say.
