Gold is rebounding today after two straight days of sharp declines, trading up $46 (+1.13%) at $4,145. The session high reached $4,149.86, while the low touched $4,066.17.
Yesterday, the metal dropped for a second consecutive session, finding support near $4,004—just above the key psychological level at $4,000. That low held well above the 38.2% retracement of the rally from the late-July low at $3,955.77, which remains a critical support marker.
For sellers to regain control, a sustained move below $3,955.77 would be required. Until then, the broader uptrend remains technically intact.
On the topside, the key target will be near the 200 and 100 hour MAs (see green and blue lines on the chart below). Those levels come in at $4090.30 and 4199.79 – just below the key $4200 level. On Tuesday the price fell below that moving average levels, and stay belowed the levels.
Buyers would need to get above those moving average levels to take back the short term control. Absent that and the sellers are still in play with work to do on the downside to increase their bias control.
Support held. Resistance remains above. A battle is on between the key technical levels
