- XAU/USD remains under modest bearish pressure on Monday.
- Gold’s near-term outlook stays neutral with a bearish bias.
- Next key support is located around $1,720 area.
The XAU/USD pair managed to post small gains last week but struggled to gather momentum on Monday with the risk-averse market environment providing a stronger boost to the greenback rather than gold. As of writing, the pair was down 0.6% on a daily basis at $1,735.
Gold technical outlook
Earlier in the session, XAU/USD dropped to the lower limit of the near-term range around $1,730 but staged a technical rebound. On the four-hour chart, the 50-period SMA is enforcing this static support and a break below that level could open the door for additional losses toward $1,720 (100-period SMA, Fibonacci 23.6% retracement of the Feb. 2-Mar. 8 downtrend).
On the upside, the initial hurdle is located at $1,740 (20-period SMA) ahead of $1,750 (static resistance) and $1,755 (Mar. 19 high).
In the meantime, the Relative Strength Index (RSI) on the same chart is staying around 50, suggesting that gold is struggling to make a decisive move in either direction at the start of the week.
Additional levels to watch for
Additional levels to watch for
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