Article by: ETO Markets

A generally upbeat outlook for the equity markets may help to mask any significant increase in the price of safe-haven gold. The US economic docket, which includes the Producer Price Index, Housing Starts, and Michigan Consumer Sentiment Index, is currently of interest to market participants. Influential FOMC members' speeches and this will fuel USD demand and provide the XAU/USD some momentum. The minutes of the FOMC meeting, which are due on Wednesday, will then come into focus. However, the precious metal is still expected to finish lower for the second consecutive week.

Any further upward movement is probably going to run into some resistance close to the $… mark. The gold price should be able to test the 50-DMA, which is presently at $…, with some follow-through buying. The latter is expected to serve as a crucial turning point that, if overcome with conviction, will pave the way for further rises above the $… intermediate barrier.

Conversely, the 100-DMA, which is presently trading around $…, may provide instant support before $…, or the two-month low that was reached on Wednesday. The crucial 200-DMA, which is now positioned around the $… region, comes next. If it is broken forcefully, this will be interpreted as a new catalyst for bearish trades.