Today, gold found support at the 200-SMA on the 4-hour chart. Yesterday, gold also found solid support and rebounded from the 200-period Exponential Moving Average (EMA) on the same timeframe. This indicates positive sentiment. However, the mixed oscillators on the chart call for caution from buyers before preparing for further growth.
A breakout above the round $4100 level could trigger a short-covering rally, pushing the price into the $4145–4150 level on its way to the round $4200 level.
On the other hand, the $4043–4045 level protects against an immediate decline before the 200-period EMA on the 4-hour chart, which lies just above the round $4000 level. A convincing break below this level would make gold vulnerable to an accelerated drop toward support at $3930, before ultimately falling to the round $3900 level on its way toward the $3886 area seen at the end of October.
