Gold Price Analysis: XAU/USD finds resistance near $1,710
|- XAU/USD continues to fluctuate in a tight range on Tuesday.
- RSI indicator on the daily chart stays flat near 50.
For the second straight day on Tuesday, the XAU/USD pair is having a difficult time setting a near-term direction. After dropping to a daily low of $1,693 during the Asian session, the troy ounce of the precious metal rose steadily but failed to hold above $1,710. As of writing, XAU/USD was up 0.33% on the day at $1,703.
XAU/USD technical outlook
On the daily chart, the RSI indicator stays flat near 50, confirming the pair's indecisiveness. Meanwhile, the pair remains on track to close below the 20-day SMA for the third straight in a row, suggesting that buyers are struggling to take control of the price action.
$1,710 (20-day SMA) area aligns as the first short-term resistance ahead of the next hurdle at $1,720. If XAU/USD successfully clears those resistances, it could aim for $1,750 (multi-year highs) but this seems unlikely without a fundamental catalyst.
On the downside, a strong support seems to have formed at $1,680 (Fibonacci 23.6% retracement of Mar. 20 - April 14 rally). Only a daily close below that level could cause the bearish pressure to build up and drag XAU/USD toward $1,660 (Apr. 21 low) and $1,647 (50-day SMA).
XAU/USD daily chart
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.