Gold Price Analysis: XAU/USD could extend recovery to $1,745
- Gold stays relatively calm after closing the previous week in the green.
- Near-term hurdles for XAU/USD align at $1,740 and $1,745.
- Key support for gold is located at $1,700.
Last week, the XAU/USD pair snapped a three-week losing streak and closed in the positive territory at $1,726. On Monday, the pair is having a difficult time setting its next short-term direction and was last seen posting small daily gains at $1,730.60.
Gold technical outlook
On the four-hour chart, the price seems to be struggling to break above $1,730, where the Fibonacci 38.2% retracement of the Feb. 23-Mar. 8 drop is located. In case a four-hour candle manages to close above that level, $1,740 (100-period SMA) could be seen as the next target ahead of $1,745 (Fibonacci 50% retracement).
Meanwhile, the Relative Strength Index (RSI) indicator on the same chart is holding above 50, suggesting that XAU/USD has more room on the upside before becoming technically overbought.
On the other hand, the 20-period SMA is acting as dynamic support around $1,720 ahead of $1,710 (50-period SMA) and $1,700 (psychological level).
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.
