Gold Price Analysis: XAU/USD to face stiff resistance at $1736 after double-bottom reversal

Gold’s double-bottom reversal on the 1D chart to meet strong offers at $1736.
The RSI stays below the midline, pointing to the limited upside.
Risk-on mood persists amid Easter Monday trading, eyes on US ISM Services.

Dhwani Mehta FXStreet

Gold (XAU/USD) is struggling to extend its last week’s recovery on Easter Monday, as outstanding US NFP data-induced risk-on market mood underpins the Treasury yields at the expense of the yieldless gold.

Further, stronger US data points to faster economic recovery, which boosts expectations that the Fed could hike the interest rates sooner, weighing negatively on the yellow metal.

Meanwhile, hopes of US President Joe Biden’s $2 billion infrastructure plan getting approval from Congress limit the downside in gold.

From a near-term technical perspective, gold has carved out an ascending triangle formation on the daily chart after the double-bottom reversal from $1777 levels.

Note that the price has found strong support at that level on March 8 and 31.

Gold needs a daily closing above the falling trendline resistance at $1736 to confirm an upside break from the triangle.

However, with the 14-day Relative Strength Index (RSI) still trending below the central line, XAU bulls could likely face rejection at that level.

The immediate support is then seen at the 21-daily moving average (DMA) at $1723, below which Thursday’s low of $1705 could be on the sellers’ radars.

Gold Price Chart: Daily

Alternatively, if the triangle breakout occurs then the bulls will target the psychological $1750 barrier.

The next relevant hurdle then awaits at the descending 50-DMA at $1768.

Gold: Additional levels

XAU/USD

Overview
Today last price	1727.63
Today Daily Change	-1.79
Today Daily Change %	-0.10
Today daily open	1729.42

Trends
Daily SMA20	1722.71
Daily SMA50	1771.11
Daily SMA100	1815.55
Daily SMA200	1859.54

Levels
Previous Daily High	1730.68
Previous Daily Low	1705.84
Previous Weekly High	1733.24
Previous Weekly Low	1677.98
Previous Monthly High	1759.98
Previous Monthly Low	1676.87
Daily Fibonacci 38.2%	1721.19
Daily Fibonacci 61.8%	1715.33
Daily Pivot Point S1	1713.28
Daily Pivot Point S2	1697.14
Daily Pivot Point S3	1688.44
Daily Pivot Point R1	1738.12
Daily Pivot Point R2	1746.82
Daily Pivot Point R3	1762.96

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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