Gold Price Analysis: XAU/USD clings to recovery gains above $1780 as Treasury yields ease
|- Gold’s 1H chart spots falling wedge breakout, backing the bounce.
- Retreating Treasury yields save the day for the XAU bulls.
- RSI trades flat around the midline while 21-HMA offers support.
Gold (XAU/USD) is holding onto the overnight recovery gains in early European trading, showing some signs of life amid a retreat in the US Treasury yields across the curve.
In the session ahead, the rebound in gold could regain traction, as suggested by the near-term technical outlook.
Gold Price Chart: Hourly chart
The spot has charted a falling wedge breakout on the hourly sticks, following which it recaptured the 21-hourly moving average (HMA) at $1780.
The hourly relative strength index (RSI) trades flattish around the midline, offering no clear directional bias, at the moment.
To the upside, the bearish 50-HMA at $1793 could challenge the buyers’ commitments. Further up, the January low of $1803 could be tested.
Alternatively, a breach of the 21-HMA, the pattern resistance now support at $1773 could guard the downside.
Meanwhile, Wednesday’s low at $1770 could be eyed ahead of the November 30 low of $1765.
Gold: Additional levels
The spot has charted a falling wedge breakout on the hourly sticks, following which it recaptured the 21-hourly moving average (HMA) at $1780.
The hourly relative strength index (RSI) trades flattish around the midline, offering no clear directional bias, at the moment.
To the upside, the bearish 50-HMA at $1793 could challenge the buyers’ commitments. Further up, the January low of $1803 could be tested.
Alternatively, a breach of the 21-HMA, the pattern resistance now support at $1773 could guard the downside.
Meanwhile, Wednesday’s low at $1770 could be eyed ahead of the November 30 low of $1765.
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.