Search ForexCrunch
  • Gold is breaking higher as the US dollar rebound loses steam.
  • The US Treasury yields retreat ahead of the Retail Sales release.
  • XAU/USD is teasing symmetrical triangle breakout on the 1H chart.

Gold  (XAU/USD) is extending its rebound from Wednesday’s low of $1733, looking to recapture the $1750 psychological barrier ahead of the all-important US Retail Sales report.

The renewed uptick in gold is mainly driven by a pause in the tepid bounce staged by the US dollar earlier in the Asian session. Further, a retreat in the US Treasury yields amid a cautious market mood also underpins the non-yielding gold.

Adding to it, the prospects of the  US sanctioning the Russian debt tempers the appetite for riskier assets while benefiting the safe-haven gold. Meanwhile, ongoing US-China tensions also render supportive to the yellow metal.

Gold: Technical outlook

Gold is on the verge of confirming a symmetrical triangle breakout on the hourly chart should the price close the candlestick above the falling trendline resistance at $1743.

If the upside break materializes, XAU bulls could attempt  another run to recapture the $1750 psychological level, above which the horizontal trendline (orange) resistance at $1758 could be tested.

The Relative Strength Index (RSI) backs the case for additional upside, given that it points north at 58.84, as of writing.

Gold Price Chart: One-hour

However, if the bears manage to fight back control, the metal could fall back towards a critical confluence support area at $1739, comprising of the downward-sloping 100, 50 and 200-hourly moving averages (HMA).

The next relevant cap is seen at the rising trendline (triangle) support, currently at $1736.

A sustained break below the latter could trigger a triangle breakdown, opening floors for a test of the April 13 low of $1724.

Gold: Additional levels

 

Expert score

5

Etoro - Best For Beginner & Experts

  • 0% Commission and No stamp Duty
  • Regulated by US,UK & International Stock
  • Copy Successfull Traders
Your capital is at risk.