Gold Price Analysis: XAU/USD looks to retest key $1,760 resistance
|- XAU/USD is struggling to find direction at the start of the week.
- Additional gains are likely if XAU/USD manages to break above $1,760.
- Buyers continue to defend key support at $1,730.
The XAU/USD pair closed the previous week in the positive territory but seems to have gone into a consolidation phase on Monday. As of writing, gold was virtually unchanged on a daily basis at $1,743.
Gold technical outlook
The 50-day SMA continues to act as dynamic resistance at $1,760. During the Asian trading hours, XAU/USD turned south after failing to break above that level and retreated to the $1,730 area, where the Fibonacci 38.2% retracement of Mar. 31-Apr. 8 uptrend is located. Additionally, the 100-period and the 200-period SMAs on the four-hour chart, as well as the 20-day SMA, are reinforcing that support. As long as buyers continue to defend this level, gold could try to retest the 50-day SMA.
On the upside, a daily close above $1,760 could open the door for additional gains toward $1,785 (Fibonacci 38.2% retracement of the January-March downtrend). On the other hand, $1,720 (Fibonacci 50% retracement of Mar. 31-Apr. 8 uptrend) could be seen as the next support below $1,730.
In the meantime, the Relative Strength Index (RSI) indicator on the four-hour chart is pushing higher toward 60, suggesting that the bullish momentum is gathering strength.
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