Gold Prices Slip Back into Bear Market Territory
Gold prices slipped on Thursday after failing to break through key resistance levels, including its 200-day moving average. The spot gold price had reached a high of $4524.34 on Wednesday but retreated as investors took profits and weighed the impact of Fed minutes and Treasury yields.
The 50% retracement zone for gold's main range is between $4744.34 and $4541.88, which could be a target if the market overcomes its current resistance with conviction. However, the market's failure to break through the 200-day moving average at $4511.57 sent it back into bear market territory.
Support levels remain in place, including a minor 50% level at $4416.82, which gold tested for two weeks prior to its recent rally. If this support level fails, the swing bottom at $4311.04 could be the next target. Momentum could shift back to the downside if the market cannot hold onto this support.
The 50-day moving average is starting to hook up, which could be a bullish signal in the near term, but gold needs yields to decline and the dollar to stay soft to sustain its rally.