The price of gold has seen a sharp reversal lower since peaking at $2070.42 on March 8.
The pair reached a bottom yesterday at $1894.70. That was just above a swing low going back to the end of February and the 61.8% retracement of the move up from the January 28. Both those levels come in at $1890.94.
In trading today, the price is currently trading at $1944.30. That’s up $16.75 on the day. Moreover the price is currently trading back above its 100 hour moving average at $1941.58.
The price has been trading above and below that 100 hour moving average over the last few hours as traders decide the next move. Buyers and sellers are battling it out.
For the gold bulls, if the price can move higher, the next key target would come in at $1959.21. That was near swing lows from March 7, March 11 and also near the 38.2% retracement of the move up from the January 28 low.
For sellers year the 50% midpoint of the move up from the January 20 low comes in at $1924.86. That level was rebroken on the way to the upside. A move back below the level would tilt the bias back in the downward direction.
