The yellow metal is struggling to find direction at the start of the week as additional gains are likely if the XAUUSD pair manages to break above $1,760. Buyers seems top continue to defend key support at $1,730.
Gold closed the previous week in a positive state but seems to have gone into a consolidation stage on Monday. As of writing, gold was virtually unchanged daily around the price $1,743.
Technically, the 50-day SMA continues to act as dynamic resistance at $1,760. Throughout the Asian trading hours, Gold turned south after failing to test above that level and retreated to the $1,730 area, where the Fibonacci 38.2% retracement of Mar. 31-Apr. 8 uptrend is located. Moreover, the 100-period and the 200-period SMAs on the four-hour chart, as well as the 20-day SMA, are reinforcing that support. If buyers continue to defend this level, gold could try to retest the 50-day SMA.
On the bull side, if it closes above the $1,760 price, it could free the door for additional gains toward $1,785 (Fibonacci 38.2% retracement of the January-March downtrend). On the other hand, $1,720 could be seen as the next support below $1,730.
For the moment, the RSI indicator on the 4-hour chart is pushing higher toward 60, suggesting that the bullish momentum is gathering strength.
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