You can't keep a good gold down. But even with the nudge higher today, it doesn't mean that dip buyers are back in control when it comes to gold price action. The near-term chart shows that while they stepped in closer to $3,900, there's still more work to be done to relinquish the recent selling pressure.
The 100-hour moving average (red line) around $4,042 currently will be critical point of interest in the short-term. Keep below that and the near-term bias stays more bearish. But if dip buyers can chase a move back above, then that will see them make a case for another attempt to solidify a stronger rebound after the fall since last week.
For now, it's all rather tentative. The Fed will mark the first key risk event for gold and also broader markets i.e. dollar and risk trades, this week before we get to the meeting between Trump and Xi tomorrow. Alongside month-end flows, that will define how gold traders are going to play things out in wrapping up the week.
So at least for the time being, we can lean on the technicals in defining the bias of play in the battlefield.
