Price getting closer to the 100 day MA at 1216 area
Gold is pushing lower in trading today on the back of the stronger dollar (or so it seems). It fell below the 200 day MA after Friday's stronger US employment report and move higher in bond yields. Today we are seeing more selling. The 61.8% of the January surge higher comes in at the 1221.37 level. The 100 day MA (blue line in the chart below) comes in at the 1216.50 area. The price last traded below the hundred day moving average on January 8, 2015. I would expect that on a test buyers would look to lean against the key technical level, with stops on a break below.
Looking at the hourly chart, the price decline gained momentum on the break of the trend line at the 1232 area. The move below the low from Friday's trade also solicited more selling momentum. Risk for sellers will now be against the lower broken trend line and the low from Friday at the 1228 area. Stay below and the bears remain in control.
