Gold has come off today and is moving back below the 100 (blue line at the 1290.28 currently) and 200 hour MAs (green line at the 1287.29 level). The price is also below a longer trend line starting at the year lows (see chart below).
Gold on the hourly chart.
Yesterday, the price extended below these technical levels, but failed. The subsequent correction, took the price back up to the underside of the higher broken trend line (see blue circle 5). Sellers entered against that resistance level and this helped turn the bias back to the downside.
Admittedly, the range is very narrow today. The trend in the new year is to the upside. However, the holding against resistance and move below the 100 and 200 hour moving averages, give some cause for pause. This is the time for the sellers to take charge. If they can't – or they don't by keeping the price below the moving averages (the 100 hour MA is at 1290.28), then their chance goes back out the window. The time is now to either take charge, or retreat.
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