Gold Price Forecast: XAU/USD closes Monday above $1,920

The Gold Spot price closed at $1,922 in Monday's session, tallying a 0.18% daily increase. Thanks to the weaker US Dollar, precious metals were allowed to gain some traction, but the US Treasury yields, which remain high, halted all attempts to make a significant upward movement.

On the technical front, the daily chart indicates neutral but with a slight bullish bias in favour of Gold buyers. The Relative Strength Index (RSI) displays an ascending slope in the bearish territory, hinting at a potential trend reversal of the recent bearish movements. At the same time, the Moving Average Convergence (MACD) prints lower green bars, which signifies that despite bulls gaining some ground, their momentum is relatively weak. In addition, on the bright side, the pair is holding above the 20- and 200-day Simple Moving Average (SMA) convergence at the $1,915-1,920 and as long as the buyers keep this level, the downside will be limited. However, the bulls still have more work to do and must target the 100-day SMA at $1,950 to gather momentum and continue breaking resistances. Above the 100-day average, the following targets are $1,970 and $1,990.

XAU/USD Daily chart