It is the third time in as many months that gold has tried to take a run above the resistance region of $3,430-35 but ended up failing.
The rejection is a blow to a potential upside breakout but gold still has the same factors working for it as it has earlier this year.
And a lot of that ties back to the loss of confidence with the dollar as well. And when you throw in other factors such as ETFs needing to catch up and central bank demand still largely underpinning the precious metal, there are still a host of reasons for gold to stay bullish for now.
The latest drop this week now brings gold back to trade in between its key hourly moving averages. That means the near-term bias is now more neutral instead.
For now, the 200-hour moving average (blue line) near $3,365 is helping to stall the downside today. Keep above that and buyers are still hanging in there in waiting for another shot to get back to the upside. But break below, and the near-term bias switches to being more bearish. And that opens up a potential extension to the drop this week back into the consolidation zone closer to $3,300.
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This article was written by Justin Low at investinglive.com.Hence then, the article about gold falls back after upside move stalls at key resistance level was published today ( ) and is available on forex live ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
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