Support in the $1258 to 1261 area now
The price of gold surged on the back of the US airstrike against Syria. The price moved from a low of $1250.65 to a high of 1269.53. In the process, the price moved above the 200 day MA at the 1258.57 level. This was the first significant break above the key MA since the November election day. There have been little peaks above the MA at the end of February and again toward the end of March. Earlier this week (on April 4th) there was another peak above the line, but the price moved back lower. Today's break is the most significant.
The question going forward now is "Can the buyers keep the price above the key MA support level now, and keep the bulls in control? " That level is key.
A closer area to eye on a correction ahead of the key 200 day MA are the highs from March and early April. The highs at that time came in at 1261.08 and 1261.34. The low corrective price so far has reached 1261.99, and there is a modest move back higher.
With the 200 day MA at 1258.57 and the prior March and April highs, at 1261 area, traders have risk defining levels to lean against if the buyers are to remain in control. A move below each muddies the water a bit from a technical perspective for the buyers. Traders like to see breaks (like that of the 200 day MA) to turn what was resistance, into support. We will see if the buyers can hold that support.