Gold Price Analysis: XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales
|- Gold is breaking higher as the US dollar rebound loses steam.
- The US Treasury yields retreat ahead of the Retail Sales release.
- XAU/USD is teasing symmetrical triangle breakout on the 1H chart.
Gold (XAU/USD) is extending its rebound from Wednesday’s low of $1733, looking to recapture the $1750 psychological barrier ahead of the all-important US Retail Sales report.
The renewed uptick in gold is mainly driven by a pause in the tepid bounce staged by the US dollar earlier in the Asian session. Further, a retreat in the US Treasury yields amid a cautious market mood also underpins the non-yielding gold.
Adding to it, the prospects of the US sanctioning the Russian debt tempers the appetite for riskier assets while benefiting the safe-haven gold. Meanwhile, ongoing US-China tensions also render supportive to the yellow metal.
Gold: Technical outlook
Gold is on the verge of confirming a symmetrical triangle breakout on the hourly chart should the price close the candlestick above the falling trendline resistance at $1743.
If the upside break materializes, XAU bulls could attempt another run to recapture the $1750 psychological level, above which the horizontal trendline (orange) resistance at $1758 could be tested.
The Relative Strength Index (RSI) backs the case for additional upside, given that it points north at 58.84, as of writing.
Gold Price Chart: One-hour
However, if the bears manage to fight back control, the metal could fall back towards a critical confluence support area at $1739, comprising of the downward-sloping 100, 50 and 200-hourly moving averages (HMA).
The next relevant cap is seen at the rising trendline (triangle) support, currently at $1736.
A sustained break below the latter could trigger a triangle breakdown, opening floors for a test of the April 13 low of $1724.
Gold: Additional levels
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