Low from Friday tested. Price bounced.
The price of gold is seeing a bounce after testing the Friday low at $1386.80 and stalling the fall. The low for the day reached $1385.87 – below that Friday low by about $1 – but could not keep the momentum going on the break. Seller turned to buyers.
The contract remains below it’s 200 and 100 hour MAs (green and blue lines) at $1405.40 and $1406.45 respectively. A trend line connecting the high from last week on the hourly chart above, cuts across at 1404.89. That is near the MA levels as well. It will take a move above each to get the bulls going again (and give more confidence technically).
UBS was out earlier today saying they expect gold to reach $1450 by the end of 2019 and $1500 by the end of 2020. That is higher of course but only by 3.8% from current levels (for 2019).
If it is going there as per their expectations, getting back above the 100 and 200 hour MAs is step 1. Until then, the sellers are holding onto some intraday/intermediate control. Admittedly, the price is not running lower, but there is work to do as welll for the bulls to turn the technical bias more to the upside.