Gold price soars to record high before dramatic plunge; Buyers still in play

Gold sure had a wild trading day with the price initially spiking higher in racing to a new all-time high level of $2146.79. However, momentum faded in the price quickly rotated to the downside. The price is currently down $-44.33 or -2.14% at $2027.54.

The low price for the day reached $2020.26. That low tested and fell below its 200-hour moving average currently at $2025, but stayed above the 38.2% retracement of the move up from the October swing low at $2018.26. That area between $2018.26 and $2025 is now support. It would take a move below that area to increase the bearish bias.

Absent that and although the price is below previous swing highs from April at $2047.47 and May at $2081.82, buyers are still in play. Ultimately if the buyers are to take more control getting back above $2047.47 and $2081.82 is needed to increase that bullish bias.

So although a new all-time high was made, there has to be some disappointment in the inability to keep the momentum going. The market technicals are more neutral as a result. Getting below $2018 would increase the bearish bias. Getting back above $2047 would help bullish bias.

This article was written by Greg Michalowski at Source