Gold buyers risk losing further momentum as price breaks below 200-hour moving average

Technical Analysis

Author: Justin Low | gold

Trouble in paradise?

Gold H1 19-08
Gold buyers look to be exhausted at this point as price starts to fall back below the 200-hour MA (blue line) for the first time since 1 August.

Price tested the key near-term level several times since Friday but ultimately, sellers are now winning out as the dollar holds firm amid a jump higher in Treasury yields.

If sellers can hold a break here, they will regain near-term control and potentially look for a move lower in the coming sessions. So, what are the levels to look out for in that case?

The $1,500 will be the first key level to watch out for as a break below the figure level will lend added conviction for sellers to drive price lower. Beyond that, the 38.2 retracement level @ $1,483.72 will also be a key spot to watch out for.

As we navigate through the week, the Jackson Hole symposium in the latter half will be of growing importance to markets and the fear now is that the Fed may not be as dovish as what market pricing may suggest.

Last week's US economic data lends reason to that and markets may be playing it more cautious (profit-taking) into the meeting after building up much anticipation over the past few weeks since the latest round of Trump tariffs.

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