Gold Price Hovering Around Key 200-Day Moving Average

New York (July 17)  Gold’s 200-day moving average – currently around $1,230 an ounce for spot metal -- remains a key technical-chart point for the yellow metal, traders and analysts say. “If it were to rise above this level in any lasting fashion, we could see technical follow-up buying,” Commerzbank says. The metal was above this average on Friday after soft U.S. economic data, dipped slightly below in Asia-Pacific trade Monday but is just above it again. “Gold traded with a mild bid bias during Asian hours on Monday, importantly breaking back above the 200 DMA in early session flows and notably seeing solid regional physical interest,” says Sam Laughlin, senior trader of precious metals with MKS (Switzerland) S.A.

“Early Chinese interest saw gold to the session high of $1,232.20, while the remainder of the session saw the metal locked within a narrow range. The short-term key for the metal will be holding around the 200 DMA, with targets extending to $1,235 -$1,240 and $1,250 beyond this.” As of 7:37 a.m. EDT, spot gold was up $4 to $1,231.50 an ounce.