Gold moves sharply higher and tests swing high from May 24

Technical Analysis

The price of  gold  is up up $23.40 or 1.27% at $1869.35. That takes the price above a swing area between $1863 and $1869. Within that range is also the 38.2% retracement of the move down from the April 18 high at $1866.93. The high price today reached $1870.53 so far, but has backed off modestly..

If the price can gather momentum above the 38.2% retracement/swing area (yellow area in the chart above), it opens the door for further momentum toward the 50% of the same move down at $1892.03. That level also corresponds with a swing high going back to May 6.

Buyers are making a play today helped by the move above the 100 and 200 hour moving averages earlier in the session

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