Gold turned bearish in August last year, as the global economy started to recover, after the lock-downs in spring, which sent the global GDP diving lower. The uncertainty remained quite high with the social and political scene shifting on a global scale, but Gold kept the bearish trend nonetheless.

As a result, GOLD lost around $400 or $4,000 pips from top to bottom as we explained in our Gold forecast for 2021, but it seems like a support area has formed around $1,675. That support level held the decline in the beginning of March and it did so again at the end of the month.

Gold bounced off that area last week and we decided to open a sell forex signal below moving averages. Butm these MAs were broken without much resistance and the price moved above them. This week, the MAs seem to have turned into support, which indicates that buyers are still in control of Gold.

The 20 SMA (gray) and 200 SMA (purple) provided support this week on the H4 chart above and now the price is bouncing higher, heading for $1.750. Our trade has a chance with the 50 SMA (yellow) standing above, ready to provide resistance on the daily chart, but let’s see how Gold will react up there at $1,550.