Spot gold moved up over $34 on the day after gapping higher on the open on increasing flight into safety of the precious metal.
The price high reached 2002.57. The price closed on Friday near $1968.50.
The move higher on gap higher opening today saw the price move above the February 24 high at $1974.40 opening the door to the upside. After the first spike, the pair did move down and test that old high (see green circle 3), but found support buyers. However, over the last 3-4 hours, the price has fallen back to a new intraday low at $1961.17 and in the process back below that old high.
What now?
The price has seen a rebound off the low and has seen the price trade above and below the close from Friday AND the high from February 24. The current price is trading right near unchanged, and below the old high from February 24. If the price can move away from those levels (watch 1974.40 in the short term), the price can look toward the 38.2% of the move up from the February 25 low at $1954.90. Below that, targets include $1950 followed by the rising 100 hour MA at $1944.74.
Conversely, momentum back above $1974.40 could see the sellers give up and push back toward $2000 again. Needless to say that will remain a KEY natural target to get to and through.
