- Gold advances towards $1750 amid the golden cross on the 1H chart.
- Overbought RSI conditions warrant caution, as the critical level gets challenged.
- XAU/USD eyes US data and Biden’s speech, as it extends a three-day winning streak.
Gold (XAU/USD) closes in on the psychological $1750 mark amid a broad-based sell-off in the US dollar, as the Treasury yields resume their corrective declines.
The US stimulus passage and receding inflation fears fail to bode well for the rates, in turn, benefiting the non-yielding gold.
From a short-term technical perspective, gold’s hourly chart confirmed a golden cross that followed a strong move to the upside. A golden cross is represented when the 50-hourly moving average (HMA) crosses the 200-HMA from below.
Although the XAU bulls need to clear the horizontal trendline (orange) resistance at $1741 to unleash additional gains.
The next barrier awaits at the aforesaid $1750 mark, above which the March 1 high at $1760 could be challenged.
The Relative Strength Index (RSI) has eased off highs while trending within the overbought region, suggesting that the price could see a minor pullback before it resumes the recovery momentum.
Gold Price Chart: One-hour
On the flip side, the bullish 21-HMA at $1728 could offer some temporary support to the buyers.
The next downside target for the bears is seen at $1719, the upward-sloping 50-HMA. Further south, the 200-HMA cushion at $1715 could be put to test.