Gold (XAU/USD) has stalled its rebound and turns south once again, undermined by broad-based US dollar strength, as markets seek safety in the greenback amid fears of overheating and Turkey’s abrupt sacking of the central bank Chief.
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Although the XAU buyers remain hopeful amid falling US Treasury yields, which make the non-yielding gold relatively attractive. The benchmark US 10-year rates shed 3.30% so far, back under the 1.70% level.
Gold’s fate hinges on the Fed Chair Jerome Powell’s speech due later in the session ahead. However, the bright metal risks further falls if the risk-aversion deepens in European trading and refuels the haven demand for the buck.
From a near-term technical perspective, gold is on the verge of confirming a rising wedge breakdown if the price closes the four-hour candlestick below the $1737 support.
Gold Price Chart: Four-hour
(Click on image to enlarge)
The bears will then test the bullish 50-simple moving average (SMA) at $1730, below which the 100-SMA at $1722 could be challenged.
Acceptance below the latter is needed to extend the downside towards the previous month low of $1717.
The Relative Strength Index (RSI) points south while trading currently at 48.99, suggesting that the spot is poised for more losses.
On the flip side, if the 100-SMA support holds, a move back towards the pattern support now resistance at $1737 would not be ruled.
Further up, the daily high of $1747 could be next on the buyers’ radar, as they eye a sustained break above the $1750 psychological level.
Gold: Additional levels
XAU/USD
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