Spot Gold (XAUUSD) finished lower last week after an attempted breakout over a long-term 50% level at $4,744.35 failed to attract enough new buyers to extend the rally. Sellers then hit it hard before stopping just short of a support cluster formed by a short-term 50% level at $4,495.33, a long-term 61.8% level at $4,427.82 and a short-term 61.8% level at $4,401.82.
The best support this week is the support zone formed by the 52-week moving average at $4,129.82 and the March 23 main bottom at $4,099.12.
On the upside, resistance is layered at $4,744.35, $4,850.68 and $5,028.04. A trade through $4,891.54 will shift momentum to the upside.
Early in the week, I’m going to be watching trader reaction to $4,495.33 to $4,401.82. If it fails, my focus will shift to $4,129.82 to $4,099.12.
The 52-week moving average at $4,129.82 is controlling the long-term trend.
One more thing to consider. $4,481.78 is 20% down from the all-time high at $5,602.23. Closing under it puts Spot Gold (XAUUSD) in bear market territory.
