Central bank decisions this week will be the key risk factor for gold
Gold is down by around 0.5% currently, just under $1,721 as price action remains a bit more choppy over the last few sessions after having tested resistance around $1,738.70.
That was the 16 April high and is so far helping to limit gains in gold for the time being. Meanwhile, to the downside, we can see some support around $1,710-12 come into play just ahead of a potential test of the key hourly moving averages.
The latter remains the key line(s) in the sand in keeping the upside momentum going.
As long as gold keeps above both key hourly moving averages, the near-term bias in the pair remains more bullish. However, buyers still need an added push to get above $1,738.70 to test the 14 April high @ $1,747.36 next.
Looking ahead this week, central banks will return back into focus as we will see the Fed and ECB back in action. Scheduled policy decisions aren't exactly the flavour of the coronavirus crisis, but one can never rule out major policy remarks in a time like this.
For now, the risk levels in gold can be clearly defined and limited as per the above. It is now over to key market developments to see how price action is going to develop next.
