Gold gains 1% on the day as buyers keep a defense of key support level


Gold pushes higher to $1,862 as buyers hold a defense of its 200-day moving average upon the recent drop

Gold D1 12-01

Besides the pound, precious metals are one of the more notable movers so far on the session as we see gold trade up by 1% from around $1,850 earlier to $1,862 now.

Of note, buyers are continuing to keep a defense of the 200-day moving average (blue line) after the drop on Friday and yesterday failed to close below the key level.

The 61.8 retracement level of the December rally @ $1,839.12 is also still in play.

Over the last few months, gold has had its fair share of a scare with the drop in November brought about by vaccine optimism and the latest flush coming after the Georgia elections and a rise in real yields alongside dollar strength.

That said, buyers still have more work to do from hereon to solidify further momentum.

The key hourly moving averages are seen closer to $1,888 and $1,900 now and that will be the key region to watch if buyers are to follow up with a continued rebound from here.

But if anything else, the buying on the latest dip continues does reaffirm that gold buyers are still sticking with a strong conviction to scale back in upon a test of key technical levels – as evident by the push towards the 200-day moving average this week.
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