Article by: ETO Markets
The decline in gold prices could pick up steam later in the day if the US Dollar sees fresh demand due to higher US Treasury note yields. Since there are no significant data releases on the US economic calendar for Monday, risk sentiment and the US Dollar's dynamics will continue to affect the movement of gold prices.
The price of gold has broken through the 20-SMA at $… to confront the 50-SMA, which is the next important level, at $... If the four-hourly candlestick closes below the latter, there may be a new downward trend targeting the $… which is the 100-SMA. The low for April 15 concurs at that level.
Conversely, on the way to recovery, the gold price may encounter its first hurdle at the 20-SMA at $…, which was once support and is now resistance. The $… round level will be tested farther up. If the latter is overcome, there will be a new upswing that might test the high of $… from Friday. The lifetime highs of $… will be relevant farther up.
