If you go by the weekly chart, there is still no firm technical breakout for gold just yet. And that is keeping a lid on gains as buyers are starting to get a little angsty about chasing a further jump higher in gold.
Gold (XAU/USD) weekly chart
The retreat yesterday met a low of $2,055, and was defended by its 200-hour moving average. That technical point is now seen at $2,058.59 with price action sitting in between that and the 100-hour moving average of $2,070.25. As such, the near-term bias for gold is now more neutral as traders get settled into the new week.
If buyers want to chase a break higher, they need to break above $2,070 and more importantly work towards securing a weekly close above the 2020 highs at $2,075. It’s not a big leap from where we are now but it still could be a tough one, even with a more favourable seasonal tailwind as highlighted before.