Gold consolidates between 100/200 hour MAs | Forexlive

The price of gold is waffling up and down today with a high at $1780.90 and a low at $1766.90. The consolidation comes after the precious metal fell -1.6% yesterday. The price today is little changed at +0.11% at $1770.51.

Technically, looking at the daily chart, the price decline yesterday came after the spot price extended above the 200 day moving average and closed above for two consecutive days. Yesterday when a new high was made, and failed, buyers turn to sellers leading to the sharp decline (see green line in the chart above) and the move back below the 200 day moving average at $1794.20. The price also fell back below the 38.2% retracement at $1788.92. Getting back above both those levels is needed to increase the bullish bias.

Drilling to the hourly chart below, the fall yesterday saw the price fall below the rising 100 hour moving average (blue line in the chart below). The low prices seen since then has found support buyers near the 200 hour moving average. That moving average currently comes in at $1768.85. The small dips below that moving hours have not found momentum. There is a reluctance to move lower (for now at least).

What next?

Although there is a reluctance to move lower, the bounce higher today also stalled well ahead of the 100 hour moving average at $1785.07.

The price is currently back down sniffing the 200 hour moving average and the 50% of the move up from the November 23 low between $1767 and $1769.

If the price can break below that area with momentum, I would expect selling to intensify.

Conversely, dip buyers looking for a low risk place to enter the market could look at these technical levels as levels to buy with a stop below the low price from earlier today at $1766.90. Low risk level for a bounce.

So overall,

• The daily chart shows some disappointment on the break of the 38.2% retracement 200 day moving average.
• The hourly chart is showing some support nearly 50% of the last move higher and the 200 hour moving average.

There is a battle. The winner will be crowned on either a break of the 200 hour moving average/50% on the downside (near $1767 – $1769), or a break of the 100 hour moving average on the upside at $1785.07.