Dip buyers tried for a run back above $4,000 yesterday only to fall short but in trading today, they are once again showing some appetite as we get into European trading. The difference now though is that we're seeing price action move up to test the 100-hour moving average (red line). That's the first real test of any of the key hourly moving averages since the heavy selling pressure from last Tuesday.
It's a key near-term level to watch as the battlefield starts to heat up in gold. Keep below the 100-hour moving average and the near-term bias stays more bearish. But break above, and dip buyers are let back into the game in holding a more neutral near-term bias with room to roam. The 200-hour moving average (blue line) is only seen at $4,096 currently.
The meeting between Trump and Xi went well but at the end of the day, it seems to be a case of much ado about nothing. The major takeaway is that both sides are avoiding any further escalation in trade tensions but after all the noise, it's mostly just a reversion back to the status quo before October.
The market optimism remains very much in check today with S&P 500 futures down 0.1% for the time being. And that's keeping gold buyers interested again with price nudging higher to start European morning trade.
