Retest its 100 hour moving average
The price of gold has moved to a new session low at $1849.60. The price currently trades at $1854 or down around $17.
Technically on the move to the downside today, the price has retested its 100 hour moving average at $1851.04. The low price did dipped below that level, but quickly rebounded (see blue line in the chart above).
On Monday, the price also tried to trade below its 100 hour moving average only to find buyers. Watch that level for clues from a technical perspective. Move below would be more bearish. For now staying above keeps the dip buyers in play despite the fall today.
On a break, the 38.2% retracement at $1841.53 would be a target.
If support can hold, getting back above the 50% retracement at $1865.22 would give the dip buyers against the moving average some more bullish comfort.
Taking a broader look at the daily chart below, the precious metal trades between its 100 day moving average above at $1911.82 and its 200 day moving average below at $1808.09 (blue and green lines respectively). The price has traded below its 100 day moving average since November 9. The high price reached yesterday was the highest since November 23.
In between sits the 38.2% retracement of the 2020 trading range which comes in at $1837.13. The low price today stalled just ahead of that level. Getting below would be a tilt more in the downward direction. NOTE: The low price reached on December 1 did find support at the 50% retracement.
