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Gold tests the floor. Key level going forward
The price of gold on the daily chart moved toward lows on the daily from March 2021 and August 21, 2021 and again in July this year. The lows came in between $1676.91 to $1681.95.
Today, the low reached to $1688.91, within $7 of the high of that swing area, and within about $12 of the low of the area. The higher dollar is the catalyst.
The price has rebounded and trades at $1695.80 as I type. That is still down about $15.40 on the day or 0.90%, but hope for the dip buyers is that the new swing area between $1676 to $1688 holds support. A move below, however, would likely trigger stops.
Buying the dip is like selling the USD. The price of gold has seen sellers as the USD goes higher. Of course if the jobs report does come in stronger tomorrow, the floor will likely be broken. However, between now and then, traders who buy may be insulated as traderss lean against the floor. Who know, maybe there is a recovery before the jobs report tomorrow which allows for partial profit or exited before the data.
What we do know is the area remains a key support and if the price doed go below, the bearish bias gets stronger. The dip buyers are likely to exit as a result.