Gold Price Forecast: XAU/USD extends downward correction to 20-day SMA at $1,730
The XAU/USD pair staged a technical correction and closed in the negative territory on Friday. Amid a lack of significant fundamental drivers, the pair extended its slide at the start of the week and was last seen losing 0.6% on a daily basis at $1,733.
A modest rebound witnessed in US Treasury bond yields on Monday seems to be weighing on gold. Currently, the benchmark 10-year US T-bond yield is rising 0.45% on the day at 1.673%. In the latest auction, the US sold $38 billion worth of 10-year notes at a high yield of 1.68%.
Gold Price Analysis: XAU/USD looks to retest key $1,760 resistance
The XAU/USD pair closed the previous week in the positive territory but seems to have gone into a consolidation phase on Monday. As of writing, gold was virtually unchanged on a daily basis at $1,743.
Gold technical outlook
The 50-day SMA continues to act as dynamic resistance at $1,760. During the Asian trading hours, XAU/USD turned south after failing to break above that level and retreated to the $1,730 area, where the Fibonacci 38.2% retracement of Mar. 31-Apr. 8 uptrend is located. Additionally, the 100-period and the 200-period SMAs on the four-hour chart, as well as the 20-day SMA, are reinforcing that support. As long as buyers continue to defend this level, gold could try to retest the 50-day SMA.
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