Gold price action sticks back to the key hourly moving averages
Gold suffered a bit of a dip at the end of last week, falling to $1,840 before recovering some poise to keep around $1,850 levels and is sticking around there for now.
Looking at the charts:
The daily chart reveals that gold is continuing to stay supported on any drop at around its 200-day moving average (blue line) @ $1,847.81 with the key trendline support @ ~$1,830 providing an extra layer of defense for buyers at the moment.
The drop comes as there is some exhaustion in even trying to get to a test of the 100-day moving average (red line), now seen @ $1,882.87.
As such, gold continues to sit in a sort of "no man's land" - trapped between its key daily moving averages in the big picture of things currently.
Looking over to the hourly chart, we can see that price action has now reverted back to playing around the key hourly moving averages @ ~$1,850 to ~$1,856.
That also indicates that there is some indecision among buyers and sellers in searching for any firm test of the key support and resistance levels pointed out earlier.
That sums up gold's technical predicament as we kick start the new week.
As for the rest of the week, the FOMC meeting will be a key one to watch as the Fed is likely to reiterate its stance that it will keep rates low for quite some time yet.
In that lieu, the market is likely to get a repeat of Powell's remarks from two weeks ago but we'll see if there will be any further follow through in price movement.
