Gold Price Analysis: XAU/USD needs to recapture 200-HMA at $1721 to unleash further upside

Gold looks to extend the recovery momentum beyond 200-HMA.
Bull flag breakout on the 1H chart suggests more gains ahead.
Overbought RSI conditions remain a cause for concern for XAU bulls.

Dhwani Mehta FXStreet

Gold (XAU/USD) is holding the higher ground above the $1700 level, as the recovery from multi-week lows extends into the second day on Thursday.

Adding credence to the ongoing upbeat momentum, a bull flag breakout got confirmed on the hourly chart earlier in the Asian session.

Gold Price Chart: One-hour

The upside break prompted the XAU bulls to regain a strong foothold above the downward-sloping 100-hourly moving average (HMA) at $1709.

The next critical barrier for the buyers awaits at $1721, which is the horizontal 200-HMA. Only a sustained move above the latter could unleash additional recovery gains.

The Relative Strength Index (RSI) lies in the overbought territory, as of writing, suggesting weakening upside momentum.

Therefore, gold could likely face rejection at the above-mentioned 200-HMA, with the focus back on the 100-HMA resistance now support.

A break below that cushion, the upward-sloping 21-HMA at $1707 could be challenged.

The $1700 mark could offer the last line of defense for the XAU bulls.

Gold: Additional levels

XAU/USD

Overview
Today last price	1715.38
Today Daily Change	10.75
Today Daily Change %	0.63
Today daily open	1707.64

Trends
Daily SMA20	1721.11
Daily SMA50	1773.9
Daily SMA100	1817.02
Daily SMA200	1859.72

Levels
Previous Daily High	1715.33
Previous Daily Low	1677.98
Previous Weekly High	1747.12
Previous Weekly Low	1721.69
Previous Monthly High	1759.98
Previous Monthly Low	1676.87
Daily Fibonacci 38.2%	1701.06
Daily Fibonacci 61.8%	1692.25
Daily Pivot Point S1	1685.3
Daily Pivot Point S2	1662.97
Daily Pivot Point S3	1647.95
Daily Pivot Point R1	1722.65
Daily Pivot Point R2	1737.67
Daily Pivot Point R3	1760

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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