The overall strength of the US Dollar put downward pressure on XAU/USD on Monday, thus allowing to extend the pair’s losses for the third consecutive session. This fall halted at 1,322.40—a level which has provided an unbreakable support for the last five weeks.
It seems that the yellow metal might be reluctant to push significantly lower in this session, given that the 100-day SMA is strengthening the 1,320.00 area. Thus, it is more likely that bulls take the upper hand and push Gold closer to 1,350.00.
The nearest resistance that could hinder rapid appreciation is the 55-hour SMA and the 23.60% Fibonacci retracement at 1,335.00. Even if this level is surpassed, further gains should be limited due to the 100– and 200-hour moving averages being located slightly higher.