Gold has been on the back foot at the beginning of a new week. The precious metal has been struggling to gain ground despite expectations for robust US stimulus – which is now high on the agenda after former President Donald Trump’s trial has ended. Will additionl funds push XAU/USD higher?
Examining the four-hour chart is pointing to further losses rather than gains. Momentum is leaning to the downside and gold is is trading below the 50, 100 and 200 Simple Moving Averages.
Critical support awaits at last week’s low of $1,810. The next downside target is February’s trough’s of $1,785. Resistance awaits at $1,820, the daily high, followed by $1,855.