Gold Price Analysis: Rejection at 50-DMA recalls XAU/USD sellers, $1730 eyed
|- Gold looks to retest $1730 support after retreating from five-week highs.
- Technical indicators still back the case for the upside.
- 50-DMA at $1760 is the level to beat for XAU/USD bulls.
Gold (XAU/USD) has returned to the red zone on Friday, having failed to surpass the critical hurdle at $1760 for the second straight session.
That level appears to be the downward-sloping 50-daily moving average (DMA). Sellers are back in control and remain poised to threaten the mildly bullish 21-DMA at $1731.
However, with the 14-day Relative Strength Index (RSI) still defending the midline, the downside appears limited by the abovementioned 21-DMA support.
If the level gives way, the April 5 low at $1721 could be put to test. Further south, the April month low so far at $1706 will be eyed.
Gold Price Chart: One-day
Alternatively, should XAU buyers find acceptance above the powerful 50-DMA resistance on a daily closing basis, the double bottom reversal in gold could likely regain momentum.
Subsequently, a rally towards the $1800 mark cannot be ruled.
Gold: Additional levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.