The 200 and 100 hour MA are topside targets
The price of gold initially moved lower today and in the process extended below the 38.2% retracement at $1679.26 and the swing low from April 13. However, the run moves lower could not be sustained, and the price has reversed higher. The pair has been able to extend back above the 200 hour MA at $1696.41 and traded above and below the level over the last 3 or so hours. The downward sloping 100 hour MA (blue line) is at $1708.06. It will take a move above each to solicit more buying.
Overall, the inability to stay below the 38.2% is not the best for the bears. This correction will be telling for the precious metal. Buyers are making a play after the failures below the minimum correction area. If they can extend above the 100 hour MA, the buyers get more confidence.
