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Gold rebounds from weekly low as technical signals turn neutral

Gold recovered after slipping to its lowest level for the week Monday, rising as far as $4,166 on Wednesday before retreating below key moving averages.

Reported · Written up by our desk · Precious Metals

Gold prices traded down to their low for the week on Monday, but sellers were unable to keep pushing, according to Forexlive. The bearish bias weakened as gold moved back above its 100-hour moving average, a downward-sloping trendline, and its 200-hour moving average.

During Tuesday’s trade, those levels held as support, helping buyers extend higher. Gold then reached its high for the week at $4,166 on Wednesday, but the rally stalled below the July swing highs at $4,180 and $4,203, allowing sellers to regain control.

The price rotated lower, breaking back below both the 100-hour moving average (around $4,072) and the 200-hour moving average (around $4,047) on Thursday. The decline found buyers near a swing support area at $4,022, a zone that dates back to May and June.

Since then, gold has rebounded and is trading between the 100-hour and 200-hour moving averages, leaving the technical picture neutral. Forexlive said traders will watch for a decisive move above the 100-hour level near $4,072 to favor buyers, or a drop below the 200-hour level near $4,047 with momentum to shift control back to sellers.

Latest closeGold $4,051.10 ▼2.3%

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