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.
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
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.
