Gold dropped close to $100 on the day, trading near $4,353 after a session low of $4,326.38. The decline pushed the metal back below its 100-day moving average at $4,379.81, handing sellers control of the technical picture.
The metal fell to its lowest level since August 18 after buyers failed to defend the 100-day moving average for a second straight session. It last traded above that average on August 19. Yesterday, buyers leaned against the line and sparked a bounce to $4,464, but today's retest produced a different outcome: sellers pushed through.
Moving average now the key level
The 100-day moving average at $4,379.81 has become the barometer for the next move. Buyers need to reclaim and hold above that level to turn the technical picture back in their favor. Until then, the break keeps sellers in charge.
On the hourly chart, the next downside target sits at the 50% midpoint near $4,319.75, followed by the August 10 and August 14 lows near $4,310.61. A break below both levels would open the door to further selling.
Yields, dollar and oil weigh on gold
Higher US yields and a stronger US dollar are adding pressure on gold today, alongside crude oil, which is up more than $3.80 on the day. All three moves are contributing to gold's decline.
Buyers had their chance yesterday and could not hold it. Today, they need to reclaim the broken support to shift the technical picture back in their favor.
Source: Investinglive
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