Gold starts to track above its 100-hour moving average
Gold is trading at session highs to begin European trading, up by around 0.3% as price is inching just above $1,718 for the time being.
The push after the Fed saw gold test its 100-hour MA (red line) but that level largely held out with near-term resistance seen around $1,718 as well.
But as we begin the session today, buyers are looking to try and establish some near-term control in a break above the 100-hour MA. Hold above that and the near-term bias turns more bullish and there will be more conviction on a firm run above $1,718.
For today, the ECB will be the key focus for gold despite the slew of data still to come in European morning trade.
If the central bank delivers more stimulus measures – although they are not expected to – or communicates plans to do so, then that could give gold another shot in the arm to push higher towards the end of the trading week.
The Fed arguably did their part yesterday by reaffirming that they will use the “full range of tools” to do more if needed. Will the ECB follow it up with a “whatever it takes” approach?