Gold sellers are still in control despite the bounce so far today
Gold is up 1% on the day to $1,791 after buyers stepped in to defend the 38.2 retracement level around $1,769 even as the dollar is keeping steadier so far today.
The latest bounce may look decent but it isn’t amounting to much – at least from a technical perspective – as of yet.
The key level to watch out for currently is the 100-day moving average (red line) near $1,796.56 and also the natural psychological level of $1,800.
Unless buyers can break above that, sellers are still in the driver’s seat with those key resistance levels arguably acting as areas to lean on.
The good news is that gold can take comfort from the fact that bonds aren’t following the dollar in reacting to the supposedly hawkish Fed.