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Gold holds technical support into the close but doubts remain

In a number of updates here last week, a couple of technical support levels were highlighted. Those were a Fibonacci correction level (1,933.43) and the 200 day moving average (then at 1,934.85). Well, gold did very briefly dip below both those price points when it traded as low as 1,933.13, after the European close on Friday. However, it was not really sufficient enough to suggest a clear break was achieved and besides the metal rebounded from there into the close, where it later ended the week at $1,940.20. Hence, from a technical perspective, it avoided what would have been a negative close, had it been below 1,934.85. Overnight Gold slipped back again as the Yen weakened (more on that in a minute). That pushed gold down to test those levels once more. The low seen was set at 1,934.13. The 200 day moving average has now risen slightly, rising to 1,935.13. So, it it just dip below it once more, but again not conclusively so. It has now rebounded off that low and it is currently trading at $1,939.10
 

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