Earlier gains erased
The price of gold is trading back in the red after move to the highest level since October 2012. The price took out the high from April 14 at $1747.36 on the run higher but has since moved back below that level. It represents a risk level for sellers looking for more downside.
Risk off flows are seeing longs lighten up on their positions (along with the failed break).
Drilling to the hourly chart below, the price fall did take the price close the 38.2% retracement of the move up from the may load to the May high reached today. That level comes in at $1729.25. The rising 100 hour moving average comes in at $1726.07. If the sellers are to take more control not only would it be better to stay below the old high from April at $1747.36, but also break below both those lower technical targets. Until then the sellers may be making a play, but the correction would still be a plain-vanilla retracement of a bigger move higher.