Gold is down by 0.8% on the day currently
Gold is continuing to struggle for a decent reprieve to start the week but at least for now, we are not seeing things get much worse as price action continues to center around the 200-day MA (blue line) near the $1,500 level.
Price is now down by 0.8% and back under the 200-day MA @ $1,504.04 as gold is unable to capitalise on the mixed mood in the dollar today.
Looking at the near-term chart, sellers are also keeping near-term control:
The 100-hour MA (red line) is the key line in the sand in trading today with further resistance seen closer to $1,500 as well as the 23.6 retracement level @ $1,510.98.
Those will be key near-term levels to watch out for in gold should buyers try to look towards an upside move over the next few sessions.
Fundamentally, the dollar is still keeping rather bid as the equities selloff and emerging markets meltdown continues to see flows into the greenback rather than gold.
But should the panic and fear become more orderly and less dysfunctional, gold stands a chance to post sharp gains amid the current market environment.
However, for now, I’d treat gold as a bit of a proxy for dollar strength for the most part. If there is still a rush to the exits in stocks and emerging markets and they aren’t going into gold, the dollar will continue to benefit as such.