Gold still needs more to "break free"

Technical Analysis

Author: Justin Low | gold

Gold price action is still seen going nowhere towards the end of the week

Gold H1 24-01
ForexLive
Buyers are keeping some near-term momentum still after the attempt to break higher in overnight trading, but price action is still rather benign at this stage for gold.

Price is keeping above its 100-hour MA (red line) but unless we can see gold firmly break above $1,563-68, then the range trading around $1,540 to $1,563 remains intact.

If you look at things more closely, the attempt to move higher in overnight trading was merely gold trying to stick back to the script of the more softer risk mood:

Gold vs USGG10YR
It hasn't been uncommon to see some divergence in gold price action relative to risk during this week and yesterday was an example of that before things "corrected" itself.

As we look towards the weekend, the mixed/uncertain mood in Wall Street especially doesn't look like it will lend much direction to gold traders. As such, we may be stuck around this range until the next key catalyst comes along to help price "break free".

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