Gold runs up to last week's highs and stalls on first look

Technical Analysis

Author: Greg Michalowski | gold

Takes a breather on the run higher

Spot gold raced up on the back of the heightened tariff war. In the process, the 100 and 200 hour MA which acted as a lid this week (see blue and green lines in the chart below) were both broken.  Sellers turned to buyers .  Also helping the bullish picture technicallly is that the lows this week formed at nice floor that could not be broken (at $1493 area). 

Takes a breather on the run higher 
The run higher has run into some overhead resistance at the highs from August 15 and August 16 at the $1528.10 area. The high price peaked at $1529.49. We are currently trading back down at $1523.64.

Drilling to the 5 minute chart below, the trend move higher took the price from $1501.98 to $1529.47 (two highs there so there is some sellers against the resistance area).  Nevertheless, if the correction can stall ahead of the $1515.73 to $1518.97 area, the battle is on vs the high resistance, but the buyers holds the strongest hand.  A  move below and the trend waters are muddy.    

Gold on the 5 minute chart.

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