- Gold is trading 0.75% higher on Monday as the greenback struggles.
- Fresh stimulus hopes and the recovering US President have boosted sentiment.
Gold 4-hour chart
There has been a pause in the recent move lower in the yellow metal after sentiment turned at the beginning of the week. The news that Mitch McConnel said a stimulus deal was getting closer and Trump leaving the hospital to resume his presidential duties were enough to send the dollar lower and push commodities higher.
There are a couple of key resistance levels on the chart to watch out for. The first and stronger of the two is the red line at USD 1915 per troy once. This level has been used as support on many occasions and the price is currently stalling at the area. The second is the downward sloping trendline marked in green. This level has been tested four times and a break could be a bullish signal. Finally, a test and break of the previous wave high at USD 1973.64 per troy ounce would end a run of consecutive lower highs and lower lows.
The indicators are just slightly bullish at the moment. The MACD signal lines are above zero but the histogram is very flat. The Relative Strength Index is above 50 but looks slightly sideways. Maybe a break of the aforementioned resistance could perk it back up.
Overall this is very much still an uptrend for gold on the higher timeframes. This retracement could just be a pretty deep pullback but a break of some of these resistance zones could go a long way to restore some confidence in the gold bugs.
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Additional levels
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