The price of gold is up sharply on flight to safety flows
Approaches 100 day moving average at $1486.17
The price of gold is up sharply in reaction to flight to safety flows on the back of a deterioration of US China trade.
Technically, looking at the daily chart, the price rise of $17.60 to $1480 has the precious metal moving closer to its 100 day moving average at $1486.17. The high price today has so far reached $1481.86.
The 100 day moving average (blue line in the chart above) was broken back on November 7. There was a test of the 38.2% retracement at $1446, and a rebound toward the 100 day moving average on November 20. Sellers leaned against the level and push the price back lower.
The last few days has seen the price consolidating at lower levels. However the run to the upside today has traders eyeing that key moving average. A move above would be more bullish from a technical perspective.