Gold has climbed back toward $4,400 over the past two days as the post-Fed bounce continues into the end of the week. The metal dodged a deeper technical breakdown after buyers defended key Fibonacci and moving-average levels, shifting the near-term bias back toward neutral.
Gold is stitching together a recovery, with prices now closing back in on the $4,400 mark after the volatility that followed this week's Fed decision. A calmer broader market backdrop is helping the move: oil prices have eased and 10-year Treasury yields have slipped back below 5%, easing some of the pressure on the metal.
Buyers defend the neckline
Earlier this week, gold was poised to break the neckline support around the $4,290 to $4,310 region and threatened a firmer move lower right after the Fed. But buyers stepped in, and the rebound took hold once gold tested the area around $4,240, which lines up with the 61.8% Fibonacci retracement level at $4,241 of the swing higher from July to August.
That support held. Price has since pushed back above $4,328, the 50.0 Fib retracement level, and back above the 100-day moving average of $4,321. That combination, a key Fibonacci retracement and moving average alignment, shifts the daily-chart bias back to neutral, further invalidating this week's downside break.
What's next for gold
The hourly chart is improving too, with buyers reclaiming the near-term moving averages and pushing another run at $4,400 for the first time in a week. The $4,400 to $4,415 region will be the first test of any further upside, while the 200-day moving average near $4,541 presents a much sterner test above that.
Gold is still working through a choppy consolidation after falling from nearly $4,700 in August, and the technical picture has only improved over the last two days. To the downside, the first key risk sits at the 100-day moving average and 50.0 Fib retracement near $4,328-31. A break below $4,241 would be needed to steer the conversation toward a potential drop to $4,000.
Source: Investinglive RSS Breaking News Feed
Trading involves risk.
Risk Disclaimer
