Gold recoups some earlier losses as risk aversion begins to seep in to the market

Technical Analysis

Author: Justin Low | gold

Gold is back up to $1,655 on a bounce from the 100-hour moving average

Gold H1 25-02
ForexLive
European indices are adjusting lower on the day, with early gains evaporating and the equities board is turning red at the moment. 10-year Treasury yields are also slightly lower and that is pushing risk to the downside currently.

USD/JPY is down to a session low of 110.38 with the aussie and kiwi also keeping lower near 0.6600 and 0.6325 against the dollar respectively.

In turn, gold is creeping back up towards $1,655 as the bounce off the 100-hour MA (red line) continues to keep buyers in the game. If we start to see a chase back above $1,660 amid more safety flows in the session ahead, gold may be up for a retest of yesterday's highs.

The key spot to watch later will be how Wall Street handles all of this. US futures are off earlier highs but are still keeping in positive territory for now. Should that flip on its head, I reckon things could get ugly once again.

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