- XAU/USD lost its traction after advancing to multi-month highs.
- Near-term support seems to have formed a little below $1,770.
- Gold continues to react to fluctuations in US Treasury bond yields.
The XAU/USD pair managed to build on last week's gains and touched its highest level since late February at $1,790 on Monday. However, the pair failed to preserve its bullish momentum in the second half of the day and reversed its direction. As of writing, XAU/USD was losing 0.13% on a daily basis at $1,774.
In the absence of significant fundamental drivers, the US Treasury bond yields' performance continues to impact gold's valuation. The benchmark 10-year US Treasury bond yield, which spent the first half of the day in the negative territory, was last seen rising nearly 1% on the day.
Gold technical outlook
On the four hour chart, the 38.2% Fibonacci retracement of the rally that started last week on Thursday and ended earlier in the day on Monday seems to have formed strong support at $1,767. Meanwhile, the Relative Strength Index (RSI) indicator on the same chart continues to hold above 50, suggesting that the pair is staging a technical correction. Below $1,767, the 20-period SMA aligns as the next support at $1,764 ahead of $1,760 (Fibonacci 50% retracement).
On the flip side, the pair could target $1,790, once again, if it closes a four-hour candle above $1,775 (Fibonacci 23.6% retracement). Finally, $1,800 (psychological level) could be seen as the next target on the upside if bulls retake control of the price.
Additional levels to watch for
|Today last price||1773.82|
|Today Daily Change||-0.93|
|Today Daily Change %||-0.05|
|Today daily open||1774.75|
|Previous Daily High||1783.85|
|Previous Daily Low||1759.82|
|Previous Weekly High||1783.85|
|Previous Weekly Low||1723.8|
|Previous Monthly High||1759.98|
|Previous Monthly Low||1676.87|
|Daily Fibonacci 38.2%||1774.67|
|Daily Fibonacci 61.8%||1769|
|Daily Pivot Point S1||1761.76|
|Daily Pivot Point S2||1748.78|
|Daily Pivot Point S3||1737.73|
|Daily Pivot Point R1||1785.79|
|Daily Pivot Point R2||1796.84|
|Daily Pivot Point R3||1809.82|
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