Broken trend line also retested
The price of gold has tumbled lower today helped by rising rates. The 10 year yield moved above 1% and currently trades at 1.0456%. The 30 year yield is up 11.43 basis points to 1.8217%.
For gold, the price is currently trading down -$41.9 or -2.14% to $1908.05. The high was up at $1959.35. The low extended to the round big figure of $1900.88.
Technically, looking at the daily chart above, the price low moved close to the underside of the broken trend line from Monday’s trading. That line cuts across at $1897.33. The 100 day MA is not far from that level at $1894.32. With the low today at $1900.88, it remained above those technical levels. Stay above, keeps the buyers more in control. Move below would weaken the technical picture.
The high price today stalled ahead of the high from November at $1965.59. The high today once again reached $1959.35.
With the trend line/100 day MA as support, and the November high as resistance, the price of the precious metal has defined the boundaries traders should now eye. A break of either extreme should lead to further momentum in the direction of the break. The levels can also act as low risk trading levels as well.