Moves away from the 100 and 200 hour moving averages
The price of gold is ending the New York session up about $4.00 at $1430.77.
The gains today took the price away from its 100 and 200 hour moving averages below at $1422.06 and $1424.54 respectively (blue and green lines). The price of the precious metal has been trading above and below those moving averages since July 23 as traders struggle with the next directional move.
The move away today – and higher- is showing the buyers are trying to take more control and push the price higher (see post from yesterday). The low in trading on Tuesday, did dip below its 200 hour moving average (green line) but could not approach the 100 hour moving average (blue line). More bullish.
It is not all green lights ahead, however. The high for the day stalled at $1433.35. That was just short of the next upside target defined by the July 25 high (last week’s high) at $1433.59. We currently traded $1430.90, off those levels.
If the price is to build off the break away from the lower moving averages, the move above this swing level will be needed. A move above that level, and traders will look toward the 61.8% retracement at $1437.08 and the swing high going back to June 25th and July 3 at $1437.88 and $1439.21.
The high price for gold in 2019 peaked at $1453.09 on July 19.
Failure to reach higher, will have traders eyeing $1427.19 (broken 38.2% retracement and swing high from July 11th). Below that, and those hourly moving averages come back into play (there will be disappointment on a break back lower).