Gold (XAU/USD) trades in the $1950 area similar to the Friday’s close, as the yellow metal draws bids from broad-based US dollar weakness and the downbeat market mood. Coronavirus updates and Fed Chair Powell’s speech are eyed on Monday. A break above the 100-HMA hurdle at $1955, the price could see a fresh uptick towards the rising channel trendline resistance at $1963.11. Only a sustained break above the latter could open doors towards the last week’s high of $1973.64.
Should the bulls face rejection at the $1963.11 barrier, the price could fall back towards the 100-HMA. Further down, sellers will aim for the 200-HMA at $1949.75 if the 21-HMA resistance-turned-support gives way. Steeper declines cannot be ruled, as the bears would regain control below a break of the $1940 level.