Gold Price Analysis: XAU/USD looks to retest $1750 as USD bounce fizzles ahead of US Retail Sales


  • Gold is breaking higher as the US dollar rebound loses steam.
  • The US Treasury yields retreat ahead of the Retail Sales release.
  • XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold (XAU/USD) is extending its rebound from Wednesday’s low of $1733, looking to recapture the $1750 psychological barrier ahead of the all-important US Retail Sales report.

The renewed uptick in gold is mainly driven by a pause in the tepid bounce staged by the US dollar earlier in the Asian session. Further, a retreat in the US Treasury yields amid a cautious market mood also underpins the non-yielding gold.

Adding to it, the prospects of the US sanctioning the Russian debt tempers the appetite for riskier assets while benefiting the safe-haven gold. Meanwhile, ongoing US-China tensions also render supportive to the yellow metal.

Gold: Technical outlook

Gold is on the verge of confirming a symmetrical triangle breakout on the hourly chart should the price close the candlestick above the falling trendline resistance at $1743.

If the upside break materializes, XAU bulls could attempt another run to recapture the $1750 psychological level, above which the horizontal trendline (orange) resistance at $1758 could be tested.

The Relative Strength Index (RSI) backs the case for additional upside, given that it points north at 58.84, as of writing.

Gold Price Chart: One-hour

However, if the bears manage to fight back control, the metal could fall back towards a critical confluence support area at $1739, comprising of the downward-sloping 100, 50 and 200-hourly moving averages (HMA).

The next relevant cap is seen at the rising trendline (triangle) support, currently at $1736.

A sustained break below the latter could trigger a triangle breakdown, opening floors for a test of the April 13 low of $1724.

Gold: Additional levels

XAU/USD

Overview
Today last price 1741.71
Today Daily Change 5.31
Today Daily Change % 0.31
Today daily open 1736.42
 
Trends
Daily SMA20 1732.26
Daily SMA50 1753.93
Daily SMA100 1805.67
Daily SMA200 1858.03
 
Levels
Previous Daily High 1749.44
Previous Daily Low 1732.64
Previous Weekly High 1758.74
Previous Weekly Low 1721.34
Previous Monthly High 1759.98
Previous Monthly Low 1676.87
Daily Fibonacci 38.2% 1739.06
Daily Fibonacci 61.8% 1743.02
Daily Pivot Point S1 1729.56
Daily Pivot Point S2 1722.7
Daily Pivot Point S3 1712.76
Daily Pivot Point R1 1746.36
Daily Pivot Point R2 1756.3
Daily Pivot Point R3 1763.16

 

 

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