Technically, the main trend is up. A trade through the record high at $4,536.74 will signal a resumption of the uptrend. The main trend will change to down if $4,274.02 fails. However, buyers are likely to reemerge on a pullback into the intermediate 50% level at $4,211.60 and the 50-day moving average at $4,202.03.
The 50-day MA is what’s holding this entire rally together. If it is taken out with heavy selling pressure and conviction, the market could collapse on aggressive long-liquidation. Until then, the market will remain in “buy the dip” mode.
Short-Term Retracement Zone Under Pressure
The short-term range is $4,536.74 to $4,274.02. Gold is currently testing its retracement zone at $4,436.38 to $4,405.38. Holding this area will indicate the presence of strong buyers and a greater chance of a new record high.
However, if $4,405.38 fails as support, the odds of a pullback to last week’s low at $4,274.02 increase.