Gold analysis: Retraces down
The resistance of the 1,790.00 level was enough for the metal's price to decline and break the ascending channel up pattern, which has guided the rate since April 14. In addition, the price had passed the support of the 55-hour SMA before finding support in the 1,765.00 level.
During the second half of Tuesday's GMT trading hours, the price was expected to pass the resistance of the 55-hour SMA and possibly once again test the resistance of the 1,790.00 level.
Gold Price Analysis: XAU/USD tests key Fibo resistance at $1,775
Despite the heavy selling pressure surrounding the greenback, the XAU/USD pair posted losses on Monday as the recovering US Treasury bond yields made it difficult for gold to find demand. With the benchmark 10-year US T-bond yield losing nearly 1% on Tuesday, however, the pair managed to regain its traction and was last seen gaining 0.2% on the day at $1,774.70.
Gold technical outlook
Gold is currently trading around the Fibonacci 23.6% retracement of the latest uptrend that started on Thursday and lasted for three trading days. If XAU/USD manages to close a four-hour candle above that level, it could look to test $1,790 (Monday high) ahead of $1,800 (psychological level).
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