Gold Price Analysis: Technical setup favors XAU/USD bulls, $1747 remains in sight

Gold has confirmed a bull pennant breakout on the hourly chart.
A bull cross is also spotted with RSI in the overbought territory.
Attention shifts towards the NFP data and next week’s FOMC minutes.

Dhwani Mehta FXStreet

Gold (XAU/USD) staged a solid comeback from multi-month troughs and rallied over 1% on Friday, courtesy of the sell-off in the US dollar across the board.

The greenback tumbled in sync with the Treasury yields amid risk-on market mood. Gold’s fate now hinges on the all-important US NFP report, with the US economy expected to add 647K jobs in March.

Looking at gold’s hourly chart, the odds are in favor of further upside after a bull flag formation got validated into the weekly closing on Thursday.

Adding credence to a potential move higher, the said time frame also displays a bull crossover, with the 21-hourly moving average (HMA) having peeped above the 200-HMA.

Gold Price Chart: One-hour

With the bull flag now in play, gold remains poised to test the pattern target at $1747.

The Relative Strength Index (RSI) reflects overbought conditions. Therefore, the buyers could see a temporary pullback in prices before the corrective upside resumes.

To the downside, the confluence of the 21 and 200-HMAs at $1720 could offer immediate comfort to the XAU bulls.

If the bearish pressure intensifies, a test of the 100-HMA at $1708 could be inevitable.

Gold: Additional levels

XAU/USD

Overview
Today last price	1729.42
Today Daily Change	0.00
Today Daily Change %	0.00
Today daily open	1729.42

Trends
Daily SMA20	1722.71
Daily SMA50	1771.11
Daily SMA100	1815.55
Daily SMA200	1859.54

Levels
Previous Daily High	1730.68
Previous Daily Low	1705.84
Previous Weekly High	1747.12
Previous Weekly Low	1721.69
Previous Monthly High	1759.98
Previous Monthly Low	1676.87
Daily Fibonacci 38.2%	1721.19
Daily Fibonacci 61.8%	1715.33
Daily Pivot Point S1	1713.28
Daily Pivot Point S2	1697.14
Daily Pivot Point S3	1688.44
Daily Pivot Point R1	1738.12
Daily Pivot Point R2	1746.82
Daily Pivot Point R3	1762.96

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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