The price of gold is trading higher by roughly $40 today, extending the rebound that began after yesterday’s dip to around $3,886. Earlier in the session, the precious metal reached a high of $4,030 before easing back toward the $4,000 level, where it now trades near $3,994. The move higher reflects a continuation of the short-term bounce, though the rally is now encountering a key technical test.
The upside momentum carried the price close to the falling 100-hour moving average, currently near $4,037 — a level viewed as a short- to intermediate-term pivot for directional bias. As gold approached that resistance, sellers began to lean against it, capping the advance just $7 below the moving average and triggering a modest pullback. The reaction suggests that short-term traders are still respecting the broader downtrend, and that buyers have yet to reclaim full control.
From a technical standpoint, buyers need to push decisively above the 100-hour moving average and hold above it to shift momentum back in their favor. Failing that, the advantage remains with sellers. On the downside, initial support is seen between the 38.2% retracement at $3,974 and the psychological $4,000 level. A break below that zone would likely embolden sellers and refocus attention on the recent corrective low at $3,886, followed by the 50% retracement of the August-to-October rally near $3,848.
Overall, while buyers have managed to lift gold sharply off recent lows, the broader trend remains capped beneath the declining 100-hour moving average. As long as price action holds below that key technical barrier, the short-term bias remains tilted toward the sellers, with the burden on the bulls to prove they can sustain momentum beyond the $4,037 resistance level.
