Gold runs into 100 day MA

Gold has pushed even higher today after weaker data spurred on hopes for more QE. That tends to weaken the dollar and benefit gold.  However,

  • The 100 day MA at 1667.90 has stalled the rally today
  • The price has consolidated over the last 5 or so hour with support eyed at 1661.80 area where the 38.2%  of the last move higher is found (see 5 minute chart below). It is also where trendline resistance was broken on the daily chart (see chart above).  

So traders have a decision to make -
  • Take another shot at pushing above the 100 day MA (the last two times failied) or
  • Push the price below the support and continue to trade in the range. 
 It  seems like traders might defer that choice  until next weeks begins.  Keep these levels in mind.


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