Tilting bias lower in up and down market.
The price of gold raced higher in early January on the Iran concerns. However, after the bombing by Iran in Iraq, the tensions were lowered and the price has moved lower. Looking at the daily chart, the price is back below the September high at $1557.11. We currently trade at $1550.48. The low today reached $1546.41.
Drilling down to the hourly chart below, the price moved higher earlier today and trade at the highest level since January 8, but then started to move back to the downside. More recently, the price has moved back below its 100 and 200 hour moving averages (blue and green lines) at $1156.67 and $1553.29 respectively. Stay below those moving averages tilt the bias more to the downside, although the precious metal still remains near the middle of the up and down trading range since January 8. The
Nevertheless sellers are more in control below the moving averages. The target on the downside include recent swing lows in the $1540.50 area, and then the swing lows from January 14 at $1536
