The tug of war continues for gold in trading today

Gold is trading back up to little changed around $4,089 now after some light selling in Asia, with the low touching $4,066. It’s not as drastic as the kind of selling and profit-taking from yesterday but it still suggests more tentative price action. The near-term chart clearly highlights that with price action continuing to rest below the key hourly moving averages:

As such, we’re left wandering in the same battlefield as were in trading yesterday. For dip buyers, they are holding the line closer to $4,000 even as the near-term bias has shifted to being more bearish for now. As for sellers, they need to do more to solidify stronger conviction for price to further correct to the downside.

The key line in the sand in breaking the selling momentum will be the 200-hour moving average (blue line), now seen at around $4,184.

As such, it’s pretty much a tug of war now amid the heightened volatility action between the $4,000 mark and the key near-term level above.

This article was written by Justin Low at investinglive.com.