Comes off highs
Gold has risen in trading today reaching the highest level since February 17th. The initial boost stemmed from the weaker jobs picture from Friday and expectations the Fed was likely to remain on hold for longer. That helped contribute to the move higher.
When the price stalled against the 50% of the move down from the January high at 1225.27 (the high reached 1224.34), the stock market recovered, and bond yields moved higher, the allure of the precious metal lost some of its luster. We are seeing the pair rotate back lower.
Although, resistance above held on the first test, the price has been able to get above the 100 day moving average (blue line in the chart above) at the 1211.54 level. Staying above that level will be key for future upside momentum. In March, there was a single day where the price traded above the MA level, only to fail. In fact, you need to go back to February 16 for the last day when the price close above the 100 day moving average. The
So support at 1211.54 but resistance at 1225.50 area with the buyers taking more control with the break above the 100 day MA today. With the dollar ticking back up, however, will that dominance continue going forward?.
