Gold prices rebounded after defending the 100-hour moving average, targeting $4,161 and $4,213 resistance zones amid mixed risk sentiment.
Gold Prices Rebound on Technical Support Defense
Gold (XAUUSD) buyers successfully defended the 100-hour moving average on Wednesday, reversing a late-session dip below the 200-hour MA and extending gains to $4,144.15, the highest level this week. The move followed a failed attempt to sustain momentum above the prior day's high of $4,115.67, with sellers initially gaining control before buyers reasserted dominance.
The price action kept the metal above the 38.2% retracement of the June 17 decline at $4,109.56, signaling a shift in short-term technical bias. Key support now lies in the $4,100-$4,110 range, where a sustained break could negate the bullish tilt. Resistance is clustered at $4,161.19 (50% retracement) and $4,212.83 (61.8% retracement), with the latter aligning with a critical swing high.
Implications for Traders
A confirmed move above $4,212.83 could open the path toward the $4,350-$4,375 resistance zone, offering bulls a chance to reclaim broader trend control. Conversely, a break below the 100-hour MA would signal a resumption of the prior downtrend, favoring sellers.
Risk sentiment remains mixed, with equity markets showing resilience despite sticky inflation concerns. Gold's correlation with the dollar (DXY) and real yields will likely influence its trajectory, as central banks maintain divergent monetary policies.
Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. Trading involves significant risk of loss.
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