Gold stages a modest bounce after booking a 3.4% weekly loss. However, upside attempts could be limited below the 21-Daily Moving Average (DMA) of $1,941, FXStreet’s Dhwanie Mehta reports.

XAU/USD eyes 21-DMA on road to recovery

“If the recovery momentum extends, then gold bulls will need a daily closing above the upward-sloping 21-DMA at $1,941 to flex their muscles. Further up, the $1,950 supply zone could be challenged en-route the previous year’s high of $1,960. The February highs of $1,975 will be next on buyers’ radars.”

“On the downside, if the critical support line at $1,917 is taken out on a daily closing basis, then a test of the March lows of $1,901 will be inevitable. The next strong support zone is seen near $1,880, which is the confluence of the February 24 low and ascending 50-DMA.”