Gold continues to stutter to start the new week, key support level in focus

Technical Analysis

Author: Justin Low | gold

Gold briefly slips by 0.5% to just under $1,850

Gold D1 28-09
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Stocks may be climbing and the dollar is slightly on the back foot today, but that isn't quite resonating with gold buyers as bullion continues to stutter to start the new week.

The pressure on gold to start the session is putting the focus on the 100-day MA (red line) @ $1,847.10 as buyers are hoping to keep a defense of that level.

If they are able to do so, then they can live to fight another round. However, a break below that will see sellers gather more momentum for a push towards $1,800 next.

Despite the dollar's slight struggle today, it feels like gold's battle now is turning more into a technical one as well. The unrelenting run at the end of July into August was stunning but it is perhaps what is leading to the technical exhaustion recently.

There still remains some good fundamental arguments for gold in the long-run i.e. low rates for longer being the staple, but dip buyers' appetite is a bit suspect at this stage.

A flush below $1,800 may draw stronger conviction for more structural positions but for now, the 100-day MA is still the key test for sellers.

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