Gold is down nearly $100, trading near $4353 after reaching a session low of $4326.38. Today’s decline has pushed the price back below its 100-day moving average at $4379.81, giving sellers more control.
Gold last moved above that moving average on August 19. Yesterday, buyers leaned against the level and sparked a bounce to $4464. Today’s second test, however, brought a different result. Buyers could not hold support, and sellers pushed through.
The 100-day moving average now becomes the key barometer. If buyers are to regain control, they need to get—and stay—back above that MA at $4379.81. Until then, the break keeps the sellers in charge.
On the hourly chart, the next downside target is the 50% midpoint at $4319.75, followed by the August 10 and August 14 lows near $4310.61. A break below both would open the door for further selling.
Buyers had their shot yesterday. Today, they need to reclaim the broken support to turn the technical picture back in their favor.
US yields are moving higher, the US dollar is also higher on the day along with the price of crude oil which is up over $3.80. All the chart which are contributing to gold prices going lower.
This article was written by Greg Michalowski at investinglive.com.