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  • Gold looks to retest $1730 support after retreating from five-week highs.
  • Technical indicators still back the case for the upside.
  • 50-DMA at $1760 is the level to beat for XAU/USD bulls.

Gold  (XAU/USD) has returned to the red zone on Friday, having failed to surpass the critical hurdle at $1760 for the second straight session.

That level appears to be the downward-sloping 50-daily moving average (DMA). Sellers are back in control and remain poised to threaten the mildly bullish 21-DMA at $1731.

However, with the 14-day Relative Strength Index (RSI) still defending the midline, the downside appears limited by the abovementioned 21-DMA support.

If the level gives way, the April 5 low at $1721 could be put to test. Further south, the April month low so far at $1706 will be eyed.

Gold Price Chart: One-day

 

Alternatively, should XAU buyers find acceptance above the powerful 50-DMA resistance on a daily closing basis, the double bottom reversal in gold could likely regain momentum.

Subsequently, a rally towards the $1800 mark cannot be ruled.

Gold: Additional levels