Gold fell to its lowest level since August 1, touching a session low of $3311.62, just shy of the rising 100-day moving average at $3304.32. That key support level helped attract buyers, with prices rebounding on the back of equity weakness and safe-haven flows. Gold is now trading $26.77 higher at $3341.76.
From a technical perspective, holding above the 100-day moving average is critical to maintaining the broader bullish bias. A decisive break below would shift momentum into negative territory, leaving buyers with work to do to reclaim control. For now, gold remains largely range-bound between $3246 and $3452, with price swings contained despite the brief downside push in May
On the hourly chart below, gold has reclaimed the 100-hour moving average at $3336.26, signaling a near-term recovery. However, the price still sits below the falling 200-hour moving average at $3350, which remains the key ceiling. For the short- to medium-term bullish bias to strengthen, gold would need to break and hold above the 200-hour moving average, confirming that buyers have regained control.
This article was written by Greg Michalowski at investinglive.com.