Gold Rebound Fails to Clear Key Resistance

Gold prices have been trading in a tight range, with a modest gain of around $9 to $4,169. The rebound, however, has struggled to break above the falling 100-hour moving average near $4,180.40, keeping sellers firmly in control.

The key resistance cluster set by last Friday's price action at $4,319.75 has been a significant hurdle for buyers. This area included four technical levels: the 100-hour moving average, the 200-hour moving average, the 100-day moving average, and the 50% midpoint. The sellers took advantage of this convergence, limiting their risk, and the price rotated lower.

Despite finding support at the August breakout swing area near $4,115.61, buyers have yet to gain significant traction. To take control, they need to get above resistance and stay above it. The 100-hour moving average remains a critical level for gold traders, with a move above it potentially leading to further gains.

The trading lesson here is that a higher price on the day does not necessarily mean buyers are in control. Gold's modest gain has been unable to overcome the technical resistance at the 100-hour moving average, keeping sellers firmly in charge until proven otherwise.