Gold price targets $4,200 breakout, yet two key hurdles remain for buyers

As the new week kicks off, gold buyers are once again trying to push the price decisively above the $4,200 mark. During Asian trading hours, the metal reached an intraday high of $4,217, but it has since slipped back toward that level, which has been a significant sticking point since the prior week.

The $4,200-20 zone has repeatedly frustrated buyers, so it's hard to argue that gold has convincingly broken out to the upside just yet. That said, there have been at least a few positive signals for buyers since the close of last week.

On the hourly chart, gold managed to move above both the 100-hour (red line) and 200-hour (blue line) moving averages on Friday, and it has held those levels so far. This is a promising sign for buyers, particularly given the struggle to generate any sustained momentum in recent weeks. The price action suggests the short-term technical outlook is becoming more favorable, but there's still work ahead.

Even though the near-term bias now tilts toward buyers, they still haven't been able to shake off the $4,200 level. Additionally, they face swing-region resistance near $4,220, which has been a barrier to any upward moves so far this month. A break above that would send a stronger signal that buyers are attempting a more robust recovery.

But even beyond that, the daily chart poses another challenge just around the corner.

The 100-day moving average (red line) near $4,256 remains a critical technical hurdle for any upside momentum. Unless buyers can firmly surpass that level as well, I'd be cautious about suggesting the rebound in gold since late last week has much staying power.

On the downside, another rejection around $4,200-20 could embolden sellers to step back in with greater conviction. That would shift focus back to the key hourly moving averages around $4,148-56, before potentially targeting the supportive zone near $4,100-17, which marked the lows from late September and early October.

For now, clearing $4,200 is the first step buyers need to take to gain a foothold. However, it's the push past $4,220 and $4,256 that will truly test their resolve.