Gold tried to break out of its recent range yesterday but ultimately failed
Amid the risk-off tilt yesterday, buyers attempted a break at the recent range in a firm move above $1,560 but they were ultimately dragged back down as price action continues to center around the key hourly moving averages once again.
Gold is currently recovering some ground in a move back towards the 100-hour MA (red line) but unless price can shake off the recent range around $1,540 to $1,563, traders are very much trapped with little direction to work with at the moment.
In short, gold needs a fresh catalyst to drive price action out of the recent rut.
The fear surrounding the new coronavirus outbreak failed to do the job yesterday so we will have to see how the situation develops and if that will play a part in helping gold price action to "break free" eventually.
For now though, there is little to suggest any strong directional moves in gold as price action continues to stay more trapped.
The shift in near-term bias on either side of the key hourly moving averages also don't say a lot considering what we have seen over the past few days. So, it is going to take a break of the recent range of $1,540 to $1,563 for gold to potentially start trending again.
