Gold Prices Frustrated by Key Moving Averages

Spot gold prices settled slightly higher on Friday despite facing resistance from the 50-day moving average at $4,317.56 and a key 50% level at $4,319.61.

The main trend is down, with a trade through $4,399.67 needed to change the trend to up, while a move through $4,235.17 would signal a resumption of the downtrend.

Gold has been testing the retracement zone at $4,319.61 to $4,230.51 for support since September 2, with two main bottoms at $4,282.62 and $4,235.17, as well as a minor bottom at $4,244.27.

The long-term range is $3,942.10 to $4,697.11, with retracement zone resistance at $4,384.59 to $4,405.59, where the September main top at $4,399.67 fell.

With the close under the 50-day MA steering momentum downwards and the 61.8% level at $4,230.51 as a potential trigger point for an acceleration to the downside, analysts are keeping a cautious outlook on gold prices heading into next week.