Gold Price Analysis: XAU/USD clings to recovery gains above $1780 as Treasury yields ease

Gold’s 1H chart spots falling wedge breakout, backing the bounce.
Retreating Treasury yields save the day for the XAU bulls.
RSI trades flat around the midline while 21-HMA offers support.

Dhwani Mehta FXStreet

Gold (XAU/USD) is holding onto the overnight recovery gains in early European trading, showing some signs of life amid a retreat in the US Treasury yields across the curve.

In the session ahead, the rebound in gold could regain traction, as suggested by the near-term technical outlook.

Gold Price Chart: Hourly chart

The spot has charted a falling wedge breakout on the hourly sticks, following which it recaptured the 21-hourly moving average (HMA) at $1780.

The hourly relative strength index (RSI) trades flattish around the midline, offering no clear directional bias, at the moment.

To the upside, the bearish 50-HMA at $1793 could challenge the buyers’ commitments. Further up, the January low of $1803 could be tested.

Alternatively, a breach of the 21-HMA, the pattern resistance now support at $1773 could guard the downside.

Meanwhile, Wednesday’s low at $1770 could be eyed ahead of the November 30 low of $1765.

Gold: Additional levels

XAU/USD

Overview
Today last price	1783.76
Today Daily Change	9.02
Today Daily Change %	0.51
Today daily open	1774.74

Trends
Daily SMA20	1831.64
Daily SMA50	1855.56
Daily SMA100	1866.55
Daily SMA200	1858.73

Levels
Previous Daily High	1795.93
Previous Daily Low	1769.64
Previous Weekly High	1855.5
Previous Weekly Low	1807.86
Previous Monthly High	1959.42
Previous Monthly Low	1802.8
Daily Fibonacci 38.2%	1779.68
Daily Fibonacci 61.8%	1785.89
Daily Pivot Point S1	1764.28
Daily Pivot Point S2	1753.81
Daily Pivot Point S3	1737.99
Daily Pivot Point R1	1790.57
Daily Pivot Point R2	1806.39
Daily Pivot Point R3	1816.86

The spot has charted a falling wedge breakout on the hourly sticks, following which it recaptured the 21-hourly moving average (HMA) at $1780.

The hourly relative strength index (RSI) trades flattish around the midline, offering no clear directional bias, at the moment.

To the upside, the bearish 50-HMA at $1793 could challenge the buyers’ commitments. Further up, the January low of $1803 could be tested.

Alternatively, a breach of the 21-HMA, the pattern resistance now support at $1773 could guard the downside.

Meanwhile, Wednesday’s low at $1770 could be eyed ahead of the November 30 low of $1765.

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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