Gold’s recovery falls flat as price moves back towards the 100-day MA
Gold has benefited quite a bit from the recent risk off environment in markets over the past two weeks but the recovery appears to be very much a short-lived one. Although price broke back above the 100-day MA (red line) for the first time since April, buyers were unable to rally towards breaking above key resistance levels: December 2017 low and the 38.2 retracement level @ $1,238.64 .
After several tests of the resistance levels above, price is finally encountering exhaustion and is falling back down once again as risk recovers on the day. Right now, the 100-day MA @ $1,220.60 will be eyed in the sessions ahead.
With the dollar also slated to gather some tailwind over the next two days, a break back below the 100-day MA would spell further trouble for gold as we close out the year. Besides, you can only fight against the correlation for so long before it starts to come back and bite again.