Gold rally stops at 200-day moving average
|Gold has been rising since the December low of 1122.66. Prices rose steadily to break above the 50-day moving average (MA) and breached the key psychological level at 1200.
The uptrend was capped by the 200-day MA at the 1261 area. Prices were unable to close above the 200-day MA yesterday but briefly spiked above it to hit a fresh 3-month high of 1263.74.
A daily close above the 200-day MA today could trigger an upside move towards the 1300 psychological level.
But because RSI is close to overbought levels (near 70), gold prices could see a drop back towards $1245 in the short term. If this level fails to provide support, then prices could target 1220 followed by 1200 before revisiting the January low at 1180.41. This low is close to the 50-day MA, so it will be an important support area. Falling below this would shift the current medium – term bullish market structure. If prices remain supported above 1200, the current bull trend may continue.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.