- The 100 hourly SMA tests the commitment of the bulls, who are targeting the $ 1,800 level once again.
- XAU / USD continues to benefit from the general weakness of the US dollar.
- Durable goods order data for the US stands out on today’s economic calendar.
Gold (XAU / USD) is looking to extend the recovery from Friday’s low of $ 1,770, as the bulls once targeted the $ 1,800 barrier.
The persistent pessimistic tone around the US dollar continues to benefit dollar-denominated gold prices, while cautious market sentiment also supports the yellow metal.
For further directional momentum, XAU investors await the release of US durable goods data, to be released later this Monday, but the main risk event of the week remains the FOMC decision. .
From a short-term technical perspective, gold bulls will extend control following a sustained break above the 100 hourly moving average at $ 1,783, which is now acting as a powerful resistance.
The next resistance for buyers is seen at the slightly bearish 50 hour SMA at $ 1,785. Higher up, a critical bullish barrier around $ 1,798 will be back in play. That level is the confluence of Friday’s highs and two-month highs.
The RSI has turned flat, but remains just above the midline, which favors the bulls.
On the downside, if the 21-hour SMA at $ 1,780 is unsupported, the XAU / USD could drop towards the daily lows of $ 1,775.
Lower down, the confluence of the sloping 200 hourly SMA and Friday’s low around $ 1,770 could be the last line of defense for the bulls.
Gold 1 hour chart
Gold additional levels
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