Gold’s rally has been relentless, surging above the $4,000 mark and reaching as high as $4,059.31. The price came close to that peak twice this week, with today’s high stalling just short at $4,058.01, slightly below Wednesday’s top. After failing to extend higher, momentum shifted, and sellers pushed the market back down.
The retreat saw gold slip beneath the 100-hour moving average at $3,978.82 and also fall under the 38.2% retracement of the latest leg higher at $3,967.54, though importantly it held above the 50% retracement at $3,939.20. Historically, recent trend legs have tended to correct only shallowly—often short of the 50%—which keeps the broader bullish bias intact (see yellow areas on the chart above).
Still, a near-term battle is playing out. On the topside, the 100-hour MA ($3,978.79) now acts as resistance. On the downside, the 50% retracement at $3,939.20 is the line sellers need to break to deepen the correction. Until that battle plays out, gold is still “cooling,” consolidating gains after its sharp push higher but the fire is not fully out. .
The question for traders: can sellers hold price below the 100-hour MA and drive through the 50% retracement, extending the correction? Or will buyers reclaim control by regaining the 100-hour MA and reigniting the uptrend?
