Down near $16 on the day

The price of gold is trading down $15.80 to $1330.70. The low extended to $1328.54. The high reached $1346.53. The fall can be attributed to a higher dollar, with some help from the technicals.

Looking at the hourly chart above, the price started the day by moving to test the 100 hour MA (blue line in the chart above). Thar rally stalled right against the MA, giving sellers a low risk trading opportunity.

The fall took the price to the 200 hour MA (green line - currently at $1336.16). This time, support held and the price corrected higher - only to stall near the low from Friday. That led to the last leg to the downside. That move was helped by the technical break below the 200 hour MA.

The fall stalled near the lower trend line at $1329.The market is taking a break after the more than 1% fall on the day.

What next?

Given the sharp fall, I would expect the $1328 area will look to stall the fall. Look for some profit taking. However, the 50% of the move up from the Feb 8th low at $1334.49 and the 200 hour MA at $1336.16, should be a ceiling for any recovery. Dip buyers against the trend line support, should however, use the level as a risk defining level. If it holds that is good news. If it gives way (move below the 61.8% at $1328), get out as the technical selling may not be over.