Gold rallies sharply after last week’s tumble of -4.5%. Price is up 1.87% today

Gold is up sharply in trading today after falling -4.52% last week – its worst week since falling 6.03% during week of June 14, 2021.

Technically, looking at the hourly chart, the price moved sharply lower last week and in doing so stayed below its 100-hour moving average (blue line on the chart above). After reaching a key support target at its 50% midpoint of the move up from the June 10 low to the end of October high at $2538.70, the momentum to the downside stalled and there was a modest rebound into the close on Friday.

In trading today, the price moved back above its 100-hour moving average (blueline at $2581.13. After retesting the 100-hour moving average on the intraday correction, the price pushed even higher. The 200-hour moving average at $2622.85, is the next target. The current price is trading at $2611.12, up $48.16 or 1.87%.

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Gold Market Rebound

Key Points:

1. Gold surges today after worst week since June 2021 (-4.52%).

2. Technical breakout: Price extends above the 100-hour moving average ($2581.13).

3. Support level: 50% midpoint ($2538.70) halted downturn last week.

4. Next key upside target: 200-hour moving average ($2622.85).

5. Current price: $2611.12 (+1.87%).

Outlook:

1. Bullish momentum: Sustained move above 100-hour MA.

2. Potential resistance: 200-hour MA ($2622.85).

Actionable Insights:

1. Consolidation above $2622.85 confirms bullish trend.

2. Break back below 100 hour moving average and 50% retracement at $2581.13 and $2538.70 would be green lights for more downside momentum

This article was written by Greg Michalowski at www.forexlive.com.