After yesterday’s fall in the gold price the 200 day moving average is back in play – but will we get there?
The gold price has now pulled-back some 4% from its most recent highs a couple of weeks ago. Yesterday’s $20 drop has really bought the 200 day moving average back into view which is currently sitting around the $1662 level.
Whilst there will undoubtedly be a lot of buyers itching to get in around that 200 DMA level, the big upward swing since September will more than likely mean that buyers will just want to see some orders filled and if gold can hold above $1700 and even start ticking back up towards the $1725 level this week and next it will leave many bulls thinking that the 4% correction was ‘it’ and should help put upward pressure on the price.
For € gold the 200 DMA is sitting around €1295 level.
For £ gold the 200 DMA is sitting at the £1050 level. Paul Wiggins over at Market Securities has a great piece out today looking a the £ against the $ and how we can expect sterling to fall which should be supportive of gold priced in £s.
So the big question is do we get there? As long as there isn’t a rather big drop in stocks causing some liquidation of ‘good’ positions to cover them then this correction will probably bottom out around the $1700 level.
The next two days will be key however, because there is undoubtedly a negative bias in the gold market at the moment. But the longer gold can stop the rot and stabilise at these levels it should draw the bulls back in.
Certainly the next time the gold price get’s back around the $1792 level we don’t expect the bears will put up a much of a fight and we’ll clear $1800 with ease.
- Gold price back above its 200 daily moving average… when priced in Pounds
- Gold price falls to $1645 level – trading back below the 200 daily moving average
- Gold price falls back to its 150 daily moving average… again
- Gold price back above its 200 daily moving average – thank-you Mr Bernanke
- Gold price finding support at the 40 day moving average
Link to this article: : http://www.goldmadesimplenews.com/gold/after-yesterdays-fall-in-the-gold-price-the-200-day-moving-average-is-back-in-play-but-will-we-get-there-8462/