- Summary:
- Gold prices are down today, but there is evidence on the charts that the upside move on the XAU/USD could continue as bond yields falter.
Gold price (XAU/USD continues to amass gains and appears to be on its way to recovery above the $1800 mark, despite a retracement on the day that was caused by profit-taking.
The slight pullback in gold occurred as falling bond yields gained a little, with the weaker US Dollar also propping up the pair.
The heavy selling pressure surrounding the greenback continued into Tuesday, following dovish comments made by several FOMC members last week about the timing of any rate increases. With US 10-year Treasury yields only making marginal gains on the day, the price action on the XAU/USD pair may just be a slight retracement before a renewed assault by bulls towards $1800.
Technical Outlook for Gold Price
The daily chart of the XAU/USD shows that gold price hit resistance at 1789.49, but has retraced to the support at 1763.30. This rejection follows the completion of the measured move from the break of the bullish flag. A breakdown of the 1763.30 support allows the gold price to tumble towards 1741.01, with 1719.13 and 1699.43 lining up as
additional targets to the south.
On the other hand, additional follow-through buying from the intraday bounce at the 1763.30 support, allows bulls to attempt a retest of 1789.49. If gold price surpasses these levels, then 1815.20 becomes the next logical target. Above this point, 1840 and 1851.23 are additional targets to the north.
Gold Price (XAU/USD); Daily Chart
