Bearish Gold

Following yesterday's historic spread divergence Xau-Usd and futures are attempting a balance but are still far off. My focus is on Gold’s Spot prices which pulled back on the Asian session but seem to use the Hourly 4 #MA200 as a Support early in the E.U.. So it becomes obvious that Technically Selling can be done if the Hourly 4 MA200 breaks (now #1,595.80) with the obvious target being the #MA50 at #1,527.80 and #1,510.80 in extension. It is my belief though that the extension can be as low as #1,480.80. The Daily chart remains mixed and DX is not reacting as negatively as one would expect to the passing of the stimulus bill. On the other hand, Stocks are also on an upswing after hitting their March 20th Resistance which should add Bearish pressure on Gold. So in my opinion once the spread comes to balance I am expecting Gold to re-test levels close to #1,510.80. Keep in mind that my approach is Swing Trading (Long-term positions) within quarterly cycles and my goal is identifying the correct trend for a longer period of time, even if it lags to a small extent.