Gold Fights for 100-day Average

The bullion is currently having trouble breaching the 100-day moving average, which is currently near 1,225 USD. So far, all attempts to push the price up have been unsuccessful and each time the price jumped above this level, gold was sold-off and declined back below 1,225 USD.

The commodity was trading at 1,220 USD during the London session on Thursday and it was down by 0.15 per cent.

The Dollar resumed its uptrend and now seems to be gaining against the Euro and the Yen - which might be considered negative for gold. Therefore, as long as the price remains below the 100-day average at 1,225 USD, the outlook seems neutral.

Bulls need to push the price beyond this level to attack the current swing highs at 1,232 USD. The next target for bulls might be at 1,240 USD, where previous strong support of swing lows is located.

On the downside, the intraday support might be at Friday's lows at 1,216 USD and if this does not hold, we could see further decline toward the key zone near 1,210 USD, where previous highs converged with the broken trend line of the consolidation triangle.

If the price remains above, bulls could still be at an advantage, however, gold needs to push above 1,232 USD to confirm the bullish bias.