Search ForexCrunch
  • Gold looks for acceptance above 200-SMA at $1736 on the 4H chart.
  • The RSI stay well above the midline, allowing more gains.
  • US dollar weakness to aid the recovery momentum in XAU/USD.  

Gold  (XAU/USD) is bracing for another leg to the upside, as the bulls look to extend the recovery from three-week troughs of $1677.

The weakness in the US dollar and Treasury yields continues to lend support to the XAU bulls. However, the improved market mood on the economic optimism plays could likely play a spoilsport.

From a near-term technical perspective, gold is locked in range so far this Tuesday, as observed on the four-hour chart.

The 200-simple moving average (SMA) at $1736 is the level to beat for the XAU bulls while the recovery momentum remains alive so long as gold holds above the 100-SMA at $1724.

Although, the upside appears more compelling for the precious metal, as the Relative Strength Index (RSI) holds firmer at 60.79. The technical indicator holding  above the 50.00 level suggests a bullish outlook.      

 

developing story …