Gold Price Analysis: XAU/USD finds resistance near $1,745, drops toward $1,730
|- Gold fails to hold above $1,740 despite broad USD weakness.
- Daily RSI starts edging lower toward 50 on Tuesday.
- 20-day SMA aligns as the first support at $1,722.
The troy ounce of the precious metal rose to its highest level since May 21st at $1,745 on Tuesday but made a sharp U-turn during the American session. As of writing, the XAU/USD pair was trading at $1,732, losing 0.45% on a daily basis.
Earlier in the day, the broad-based selling pressure surrounding the greenback allowed XAU/USD to gain traction. However, the indecisive movements of Wall Street's main indexes helped the US Dollar Index recover a portion of its early losses and caused the pair to reverse its direction.
Technical outlook
On the daily chart, the Relative Strength Index started to edge lower after reaching 60 on Monday, suggesting that buyers are struggling to take control of gold's price action.
On the downside, the 20-day SMA is forming the first technical support level at $1,722. If XAU/USD makes a daily close below that level, it could target $1,700 (psychological level/Fibonacci 23.6% retracement of March 20 - May 18 uptrend). Resistances are located at $1,745 (daily high), $1,755 (May 20 high) and $1,765 (multi-year high/May 18 high).
Gold daily chart
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