Gold underwent a downward correction after last week's surge, dropping to $1,990 at the beginning of Monday. However, with renewed selling pressure on the US Dollar, XAU/USD reversed its direction and approached the $2,000 mark, erasing most of the intraday losses in the process. XAU/USD traded slightly lower, although the daily chart indicated a swift rebound from the day's low of $1,990.93, suggesting buyers are still willing to step in. The 20-day Simple Moving Average (SMA) also sharply turned north, staying below longer-term SMAs. Meanwhile, technical indicators remained in overbought territory, showing a mild decrease from recent highs but not enough to confirm a stronger downturn.
In the short term and on the 4-hour chart, risks tend to increase, although the downtrend is slowing. XAU/USD remained above all its moving averages, with the 20-period SMA leading the way by providing intraday support. However, the Momentum indicator extended its slide into positive territory, while the Relative Strength Index (RSI) strengthened around 60.
Support Levels: $1,990.90, $1,976.85, $1,962.10
Resistance Levels: $2,009.50, $2,023.70, $2,040.20
In the short term and on the 4-hour chart, risks tend to increase, although the downtrend is slowing. XAU/USD remained above all its moving averages, with the 20-period SMA leading the way by providing intraday support. However, the Momentum indicator extended its slide into positive territory, while the Relative Strength Index (RSI) strengthened around 60.
Support Levels: $1,990.90, $1,976.85, $1,962.10
Resistance Levels: $2,009.50, $2,023.70, $2,040.20
