Gold prices opened today’s trading on an increase of 0.6% but retreated due to lack of positive momentum. Gold is currently trying to regain its upward march, as it eyes a hold above the SMA 9 on the 4-hour timeframe.

Gold is currently trading above the weekly pivot point at $3386, where a sustained move above it could push the yellow metal prices towards resistance levels of $3488 then $3544.

On the downside, if gold prices fail to cling above the weekly pivot point at $3386 then stabilize beneath the bullish trendline, it will lose its positive momentum, thereby probably retesting support levels near $3322 then 3275.

Regarding the latest major events affecting global markets, U.S. President Donald Trump launched a military airstrike targeting key Iranian nuclear facilities on Saturday.

Global markets are cautiously awaiting the Iranian response, as it will likely have a key effect on movements of major financial assets. IMF Chief Kristalina Georgieva has warned that the latest US airstrikes on Iran could hurt global growth, if the consequence ripple beyond the energy markets.

Federal Reserve Chair Jerome Powell is due to deliver his semi-annual testimony to Congress, taking questions from lawmakers in the House of Representatives on Tuesday and the Senate on Wednesday.

Powell will likely be pressed to expound on the central bank’s decision to leave interest rates unchanged after its latest policy gathering last week.

On the economic data front, investors are waiting for key economic data later this week, particularly U.S. Core Personal Consumption Expenditures index, the Fed’s favorite inflation measure. Analysts expect annual Core PCE inflation to rise from 2.5% to 2.6%. A higher-than-expected reading could prompt the Fed to reconsider cutting interest rates in the near future.