Gold opened this week’s trading on a notable rise as it rose by over 1%, where the Bollinger Bands indicator provides positive signals as the price moves above its middle line on the 4-hour chart.

Gold is presently trading above the weekly pivot point at $3216. If the price stays above this point, it could help the yellow metal to resume its key uptrend, heading towards resistance levels at $3313 then $3421.

On the downside, if gold fails to hold above the weekly pivot point at $3216, it could retreat towards the channel’s lower line. If gold stabilizes beneath the aforesaid channel, it will likely drop to support levels at $3108 then $3012.

On the other hand, the precious metal got a boost as Moody’s cut its credit rating for the United States from “Aaa” to “Aa1,” noting on Friday that the country’s debt and interest payments are “significantly higher than comparable sovereign debt.”

This week, investors will closely watch Fed speakers as they gather clues about the timing of the next Fed rate cut. Last week, Jerome Powell said Thursday, U.S. Federal Reserve officials feel they need to reconsider the key elements around both jobs and inflation in their current approach to monetary policy.

Finally, the services and manufacturing PMI data from the U.S. is likely to grab attention. If the data exceeds expectations, it could negatively impact gold prices, while the opposite is true.