Spot gold tumbled over $70 on the day, and in the process fell below its 100 hour moving average at $1987.28, and moved into a swing area between $1974.40 and $1980.70. The pair also approached the 50% midpoint of the move up from the March 24 low at $1974.20.
However support buyers came in against the 50% level, and the low of the swing area (the low price reached $1976.30) and have since pushed the price back up toward the $2000 level. The current price is trading at $1995.70 as I type.
The inability to push below the support target levels, and holding the 50% midpoint, could give the buyers a more “buy the dip” mentality. Although stocks are higher, and crude oil remains lower, the reports from Ukraine are that shelling continues despite a supposed cease-fire so that civilians could leave through the corridors.
If the buyers start to take more control after the fall, watch the 100 hour moving average at 1987.29 for close support. Getting back above $1996.91 (38.2% retracement) and the natural resistance at $2000 would give buyers more upside momentum once again. Above that, and the $2020.98 level would be targeted (see blue numbered circles).
