Gold inched up on Monday after hitting a notable decrease in the last week’s trading, supported by SMA 9 that provided some positive momentum, as the price is moving above it on the 4-hour chart.

Currently, gold is trading above the weekly pivot point at 3265, awaiting further positive momentum to resume its upward direction towards $3328. If the price manages to stay above this level, it may soar towards $3416.

If gold fails to hold above the weekly pivot point at 3265, it will lose its positive momentum and may retest the first support level at $3177. It is worth noting that settling below the aforesaid first support could drive prices lower to the second support at $3114.

As for economic data, investors will be closely watching the release of several important economic data this week, which could have a significant impact on short-term market trends. The main highlight will be the Federal Reserve’s interest rate decision, noting that analysts predict U.S. policymakers will keep rates unchanged at 4.5%.

Traders now expect the Federal Reserve to cut interest rates by 80 basis points this year, beginning in July. These expectations followed the release of data on the U.S. labor market that showed a larger-than-expected job gain in April.

In a different context, U.S. President Donald Trump told reporters that he had no plans to speak with his Chinese counterpart President Xi, dampening expectations of formal trade talks between the U.S. and China.