Gold has climbed back above its 100-hour and 100-day moving averages, reaching a high of $4,427.65 after last week's pullback from $4,450. The recovery shifts the short-term technical bias back toward buyers, with $4,384-$4,391 now the key support zone to hold.
Gold pushed to a high near $4,450 last week before reversing lower. It slipped below two important technical levels: the 100-day moving average at $4,390.87 and the 100-hour moving average at $4,384.33. That decline pulled the metal down toward $4,350, where buyers stepped back in.
Buyers reclaim the moving averages
In trading today, gold has moved back above both averages, and renewed buying has carried the price to a high of $4,427.65. The metal now trades near $4,422. That move back above the key averages is a bullish development and shifts the short-term bias more firmly toward buyers.
The $4,384-$4,391 area becomes the key close-risk zone going forward. Staying above those averages keeps buyers in control and supports a continued move higher. A move back below both levels, however, would weaken the bullish picture and shift the bias back to the downside. In that scenario, the rising 200-hour moving average at $4,336.19 would become an important downside target.
Next targets on the topside
Moving-average support already played a role in gold's advance once before: on August 5, the price based near $4,061, where the 100- and 200-hour averages helped establish a floor ahead of the subsequent move higher.
On the topside, the first major target remains last week's high near $4,450. A break above that level would put the 200-day moving average at $4,491 firmly in play. Gold has not traded above its 200-day moving average since June 5, so a sustained break above it would strengthen the bullish structure and open the door to further upside.
Source: Investinglive
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