Corrects up to 38.2% of the move down from November 16 high
Gold is correcting higher in trading today as the dollar reverses and heads lower in the new trading day/week.
Looking at the daily chart, the precious metal bounced on Friday off the 61.8% of the move up from the December 2015 low. That came in at 1172.08. The low on Friday reached to 1171.18. By the close the price had already started the move higher.
Today we are seeing some follow through buying (the low was 1182.95 today). The high has extended up toward the 38.2% of the move down from the November 16th high to the low from November 25th. That comes in at 1194.86. The price is just chasing above that retracement level as I type.
The next key target comes in at the 100 day MA at 1197.64 (see chart above). That MA was tested on Wednesday and Thursday but could not find any upside momentum. A test - and move above - will change the technical tune to more bullish with the $1200 level as the next key target. Keep the $1210.89 level in mind in the new trading week. That price represents the 50% of the move up from the December 2015 low. I would expect sellers to lean against the level on a test.
