Gold price hits new record high; technical indicators guide traders

The price of gold is once again making a new all-time high. The current price is trading at $2843.96. The high price extended to $2845.48.

Technically, the rise today has been able to extend above a topside trendline. That level currently comes in at $2839.79. The price over the last two hourly bar tab traded above and below that trendline which shows some caution from the buyers. However the current hourly bar has been able to stay above that trendline. So has the hour ends, the buyers are making a play.

Nevertheless watch that trendline for bias clues in the short-term. If we broken on the downside with momentum, there could be more downside probing only disappointment. Be aware.

The other technical “tell” from the hourly chart above, is the number of times (about 8 itmes) that corrective dips have found support either against the 100-hour moving average or the 200 hour moving average (blue and green lines).

As a result, going forward, traders will look for break of both MAs in order to tilt the technical bias more to the downside. Absent that, and the buyers are still in play and the price action can still step higher and higher.

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