Yesterday at this time, the price of gold was trying to stay below the 100/200 hour MAs near $2510 (blue and green lines). Sellers could not keep the pressure on and the sellers turned to buyers.
After some intraday volatility yesterday, buyers returned and pushed the price back up to the ceiling area between $2526.43 and $2531.67. That area is defined by swing highs from August 20, August 26, August 24, and again yesterday (see red numbered circles). Sellers leaned and pushed lower.
The price has rotated back to the downside and trades right around its 100-hour moving average at $2514.93. Below that is the 200-hour moving average at $2510.10.
If the price can get below each of those MAs, the sellers would once again in play as the clock ticks to the close for the week.The next targets would be at $2493.50 (low from Wednesday) , $2470.60 (low from August 22) and then the 38.2% of the move up from the July 25 low. That level comes in at $2463.34.
For now however, the buyers are trying to stall the fall near the 100/200 hour MAs. They will key levels once again as the ups and downs near the highs continue for the precious metal.
This article was written by Greg Michalowski at www.forexlive.com.
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