Gold Waits on Warsh as Dollar Weakness Stalls Market

The price of gold (XAUUSD) has been fluctuating, but remains in an uptrend. Despite reaching its lowest level since August 21, it edged higher late Thursday. The market is waiting for a trade through $4697.11 to reaffirm the uptrend or a break below $4311.04 to change the main trend to down.

On the upside, a breakout above $4697.11 could target long-term levels at $4744.34 and $4773.58. However, on the downside, the first target is the long-term 61.8% level at $4541.88, followed by the 200-day moving average at $4524.29.

The reaction to the 200-day MA will likely determine whether XAUUSD makes a move to resume the uptrend or retest $4481.78. Breaking this level would put gold back into bear market territory with $4416.82 another likely downside objective.