Gold Price Analysis: XAU/USD consolidates Tuesday's gains below $1,720 resistance

XAU/USD is struggling to build on Tuesday's strong gains.
Key resistance for gold is located at $1,720.
Buyers could look to defend $1,700 if XAU/USD loses traction.

Eren Sengezer FXStreet

The XAU/USD pair gained nearly 2% and closed at $1,715 before going into a consolidation phase on Wednesday. As of writing, the pair is down 0.2% on a daily basis at $1,712.

Gold technical outlook

The Relative Strength Index indicator on the four-hour chart is moving sideways near 50, suggesting that the pair is having a difficult time determining its next near-term direction.

On the upside, $1,720 (Fibonacci 23.6% retracement of the February-March drop, march 9 high) aligns as a key resistance. Unless XAU/USD manages to make a daily close above that level, sellers could start dominating the pair's action. Other hurdles could be seen at $1,740 (static level) and $1,745 (Fibonacci 38.2% retracement).

The immediate support is located at $1,700 (psychological level/20-period SMA on the four-hour chart) ahead of $1,680 (March 8 low).

Additional levels to watch for

XAU/USD

Overview
Today last price	1710.97
Today Daily Change	-5.27
Today Daily Change %	-0.31
Today daily open	1716.24

Trends
Daily SMA20	1765.57
Daily SMA50	1822.03
Daily SMA100	1844.46
Daily SMA200	1859.76

Levels
Previous Daily High	1720.7
Previous Daily Low	1680.24
Previous Weekly High	1759.98
Previous Weekly Low	1687.37
Previous Monthly High	1871.9
Previous Monthly Low	1717.24
Daily Fibonacci 38.2%	1705.24
Daily Fibonacci 61.8%	1695.7
Daily Pivot Point S1	1690.75
Daily Pivot Point S2	1665.27
Daily Pivot Point S3	1650.29
Daily Pivot Point R1	1731.21
Daily Pivot Point R2	1746.19
Daily Pivot Point R3	1771.67

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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