200 day MA at $1260.44. The high reached $1261.08 today
Gold rallied on lower yields in the US, a lower dollar, lower stocks and concerns about Trump. At the peak the price reached $1261.08. That was just $0.64 from the 200 day MA at $1260.44. Back at the end of February, the price also peaked above the 200 day MA and fell back lower. Traders don't like to get burned twice on little breaks.
As a result, they have duly sold today and we currently trade at $1255.50. Helping has been a small rebound in yields, a higher dollar, higher stocks and less concerned about Trump (and his healthcare failure). Focus on tax reform which the White House has put an August date on a plan.
Nevertheless, the precious metal is still holding onto gains of $12. The market seems a bit skeptical about the corrections perhaps.
What might turn the beat more to the downside? After all at the end of February, that failure sent gold down to the $1200 level.
Looking at the hourly chart below, the 100 hour MA has been holding support on the rally in March. That MA currently comes in at 1248.40 (and rising). If the sellers are to take back more control, a move below that MA will give sellers more confidence the upside move is up and everything is ok in the Trump World again.
