Can gold buyers keep the momentum going after yesterday's fall?
Gold retreated in overnight trading as the risk mood was boosted by Trump scaling back on China tariffs
It's back to looking at the near-term chart for gold following yesterday's surprise. Gold fell sharply from $1,520 levels to $1,480 as Trump announced a delay on some China tariffs.
Price tested the 38.2 retracement level before bouncing back up, just before a test of the 200-hour MA (blue line). Of note, the rebound has seen gold continuously test the 100-hour MA (red line) since but buyers are unable to claim a firm break above that level.
That means the near-term bias in gold remains more neutral for now. So, what's next?
It's all about the battle of the key hourly moving averages and for buyers, there is also a need to hold firmly above the $1,500 level.
As mentioned yesterday, if buyers can just hold above $1,500 this week, that'll be considered a win already to keep the upside momentum going. But in this case, I reckon it's more reassuring if they can keep above the 100-hour MA.
Meanwhile, for sellers, any further downside retracement requires a break back below the 200-hour MA first and also the 38.2 retracement level. That should allow for a further pullback in the near-term before the focus turns back towards central banks easing in September.