Gold Price Analysis: XAU/USD climbs to three-week tops, above $1,745 ahead of Powell


  • Sliding US bond yields undermined the USD and assisted gold to regain traction on Thursday.
  • Acceptance above 200-period SMA on the 4-hour chart supports prospects for further gains.
  • A sustained move beyond the $1,760-65 hurdle will confirm a bullish double-bottom breakout.

Gold held on to its intraday gains near three-week tops and is now looking to build on the momentum further beyond the $1,745-46 resistance zone.

A fresh leg down in the US Treasury bond yields undermined the US dollar, which, in turn, extended some support to the dollar-denominated commodity. That said, the underlying bullish sentiment kept a lid on any further gains for the safe-haven XAU/USD. Investors also seemed reluctant and preferred to wait for Fed Chair Jerome Powell's speech before placing any aggressive bets around the non-yielding yellow metal.

From a technical perspective, acceptance above 200-period SMA on the 4-hour chart supports prospects for an extension of the recent bounce from multi-month lows, around the $1,677-76 region, which constituted the formation of a bullish double-bottom. The constructive outlook is reinforced by the fact that oscillators on hourly charts have been gaining positive traction and just moved into the bullish territory on the daily chart.

Hence, a subsequent towards a previous strong support breakpoint, around the $1,760-65 region, looks a distinct possibility. Some follow-through buying will validate the double-bottom breakout and set the stage for additional gains. The XAU/USD might then accelerate the momentum towards an intermediate hurdle near the $1,782 region before eventually aiming back to reclaim the $1,800 round-figure mark.

On the flip side, the $1,735 level and the overnight swing lows, around the $1,730 region now seems to protect the immediate downside. This is closely followed by the $1,720 horizontal support. Failure to defend the mentioned support levels will negate any positive bias and turn the XAU/USD vulnerable to challenge the $1,700 mark. The downward trajectory could further get extended back towards challenging the $1,677-76 support zone.

Gold 4-hour chart

fxsoriginal

Technical levels to watch

XAU/USD

Overview
Today last price 1747.48
Today Daily Change 9.68
Today Daily Change % 0.56
Today daily open 1737.8
 
Trends
Daily SMA20 1728.4
Daily SMA50 1764.06
Daily SMA100 1811.07
Daily SMA200 1858.97
 
Levels
Previous Daily High 1744.42
Previous Daily Low 1730.7
Previous Weekly High 1733.24
Previous Weekly Low 1677.98
Previous Monthly High 1759.98
Previous Monthly Low 1676.87
Daily Fibonacci 38.2% 1735.94
Daily Fibonacci 61.8% 1739.18
Daily Pivot Point S1 1730.86
Daily Pivot Point S2 1723.92
Daily Pivot Point S3 1717.14
Daily Pivot Point R1 1744.58
Daily Pivot Point R2 1751.36
Daily Pivot Point R3 1758.3

 

 

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