- Gold’s 1H chart spots falling edge breakout, backing the bounce.
- Retreating Treasury yields save the day for the XAU bulls.
- RSI trades flat around the midline while 21-HMA offers support.
Gold (XAU/USD) is holding onto the overnight recovery gains in early European trading, showing some signs of life amid a retreat in the US Treasury yields across the curve.
In the session ahead, the rebound in gold could regain traction, as suggested by the near-term technical outlook.
Gold Price Chart: Hourly chart
Gold: Additional levels
The spot has charted a falling wedge breakout on the hourly sticks, following which it recaptured the 21-hourly moving average (HMA) at $1780.
The hourly relative strength index (RSI) trades flattish around the midline, offering no clear directional bias, at the moment.
To the upside, the bearish 50-HMA at $1793 could challenge the buyers’ commitments. Further up, the January low of $1803 could be tested.
Alternatively, a breach of the 21-HMA, the pattern resistance now support at $1773 could guard the downside.
Meanwhile, Wednesday’s low at $1770 could be eyed ahead of the November 30 low of $1765.
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