Gold Price Analysis: XAU/USD eyes a break above critical $1736 barrier to unleash further upside

Gold looks for acceptance above 200-SMA at $1736 on the 4H chart.
The RSI stay well above the midline, allowing more gains.
US dollar weakness to aid the recovery momentum in XAU/USD.

Dhwani Mehta FXStreet

Gold (XAU/USD) is bracing for another leg to the upside, as the bulls look to extend the recovery from three-week troughs of $1677.

The weakness in the US dollar and Treasury yields continues to lend support to the XAU bulls. However, the improved market mood on the economic optimism plays could likely play a spoilsport.

From a near-term technical perspective, gold is locked in range so far this Tuesday, as observed on the four-hour chart.

The 200-simple moving average (SMA) at $1736 is the level to beat for the XAU bulls while the recovery momentum remains alive so long as gold holds above the 100-SMA at $1724.

Although, the upside appears more compelling for the precious metal, as the Relative Strength Index (RSI) holds firmer at 60.79. The technical indicator holding above the 50.00 level suggests a bullish outlook.

Recapturing the 200-SMA hurdle could expose the psychological $1750 level, above which the March 18 high at $1756 could be retested.

Gold Price Chart: Four-hour

To the downside, if the 100-SMA support gives way, the horizontal 50-SMA at $1719 could be back in play.

Further south, the upward-pointing 21-SMA at $1715 is likely to save the day for the XAU bulls.

Gold: Additional levels

XAU/USD

Overview
Today last price	1729.68
Today Daily Change	1.63
Today Daily Change %	0.09
Today daily open	1728.05

Trends
Daily SMA20	1724.2
Daily SMA50	1768.58
Daily SMA100	1813.95
Daily SMA200	1859.33

Levels
Previous Daily High	1733.62
Previous Daily Low	1721.34
Previous Weekly High	1733.24
Previous Weekly Low	1677.98
Previous Monthly High	1759.98
Previous Monthly Low	1676.87
Daily Fibonacci 38.2%	1726.03
Daily Fibonacci 61.8%	1728.93
Daily Pivot Point S1	1721.72
Daily Pivot Point S2	1715.39
Daily Pivot Point S3	1709.44
Daily Pivot Point R1	1734
Daily Pivot Point R2	1739.95
Daily Pivot Point R3	1746.28

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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