Test of the 38.2% holds the topside again
Spot gold is down about $11.50 or 0.96% on the day. The low reached $1193.31. The current price is at $1196.95.
The precious metal has been rallying off the December low. Interest rates fell and that helped to push the dollar lower, and in turn, gold higher. However, we are seeing yields move back higher and with it the dollar is also getting stronger. Gold has likewise reversed back to the downside.
Technically, at the recent highs, the price stalled around the 38.2% of the move down from the July 2016 high to the December low. That retracement comes in at 1218.22 and that level was tested and held on two separate occasions over the last week or so of trading. Holding the level increases the levels importance going forward.
On the downside, the 50 day MA at 1174.36 becomes a target (daily chart above).
Looking at the hourly chart below, other support on the hourly chart come in at 1182 (38.2%) and 1170.42 (50%). The price today has been above to move away from the 100 and 200 hour MAs above at 1207.87 and 1209.19 respectively. That is also a topside resistance level now.
