Gold surges as traders struggle with the Washington drama

Technical Analysis

Author: Greg Michalowski | gold

Price moves back above the 200 day MA

The price of gold has moved back above it's 200 day MA at $1244.71.  Earlier in the month the price fell below that MA on its way to trend line support (see Red circle). The Washington drama from the Comey firing, to giving Russia intelligence, to the Comey memo, has finally led to the flight into the relative safety of gold today.  It is up about $22.50 or 1.82% today.   The 200 day MA is now support as the buyers take back control.  


Drilling to the hourly chart, the price has moved above the 50% of the move down from the April 17th high. That comes in at 1254.94 and is now closer support for buyers.  The next targets come in at 1264.54 (61.8%) and the trend line off April highs at 1268.70 (see chart below).   The April high reached 1295.61 and cannot be ruled out IF those target levels can be breached. 


Buyers have taken back more control with the technical moves today.  Risk for longs at 1254.94, and then the 200 day MA at 1244.71.  Stay above, and the buyers are still in the drivers seat. 
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