It hasn't been a good month or even a good year for gold. A generally robust US stock market has kept investors away from the precious metal, whose price has steadily fallen over the past six years.
Now, as U.S. and international stocks continue to plummet, the traditional safe-haven asset is beginning to regain some of its old glimmers.
Gold surged on Thursday to its highest price in more than two months. It’s up 2.31% to $1,226.64 per troy ounce. That's par for the course, reports Forbes: When stocks tank, precious metals tend to look better to investors.
Gold prices may be up, but they’re still more than 11% down from six months ago. Yet Michael Armbruster, managing partner at Altavest, tells MarketWatch he expects more upside: "Gold is a natural safe haven and has been very out of favor for a while. I think we could see a rally to $1,300 at some point before year-end."
XAUUSD trading at $1,221.10, the pullback from $1,226.64 to $1,217.66 today day low could be associated with the overbought conditions on the hourly 4 chart and hourly 4 chart relative strength index (RSI).
XAUUSD hourly 4 chart
Focus on the daily chart 100-day Simple Moving Average
Gold yesterday touch high of $1,226.64 but was cap down by the 100-SMA level $1,228.75, confirming a bullish breakout of the consolidation resistant of Aug-Sep, however, the subsequent failure to take out the 100-SMA has established the level as the key resistance level to beat for the bulls.
XAUUSD daily chart
Gold Support/Resistant Levels
Resistance: $1,228.75 (100-SMA), $1,242.54 (50% Fibonacci level of May/Aug drop), $1,277.51 (200-SMA)
Support: $1,208.21 (consolidation resistant now support level), $1,200 (psychological support, the 20-EMA, 50-SMA and consolidation support level Aug-Sep), $1,186.87 (consolidation support)