Gold finds some buyers on dollar selling

Technical Analysis

The price of gold is up around $10 on the day. The current price is trading at $1674.11. The high price reached $1680.41. THe low extended to the lowest level since April 2020 to $1654.28.

The rebound has taken the price back into a swing area between $1670.88 and $1688.91. Also in that area is the 61.8% of the move up from the 2020 low at $1687.87.

The gains are being helped by a lower dollar (traders are starting to see weakness) and yields coming modestly off highs.

However, it would still take a move above the 1688.91 level to get the precious metal out of the bearish mode in the short term, and even then, it would just the start.

Nevertheless, a break above would have to stay above the area going forward and looking at the hourly,chart, the price would have to get back above the 100 and 200 hour MAs at 1696.07 and $1704.30 (and moving lower – see blue and green lines in the chart below). Until then, the buyers are not winning.

The targets are set. It is up to the buyers to push to and through if they are to get back in the game (with some control).

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