The US stimulus passage and receding inflation fears fail to bode well for the rates, in turn, benefiting the non-yielding gold.
From a short-term technical perspective, gold’s hourly chart confirmed a golden cross that followed a strong move to the upside. A golden cross is represented when the 50-hourly moving average (HMA) crosses the 200-HMA from below.
Although the XAU bulls need to clear the horizontal trendline (orange) resistance at $1741 to unleash additional gains.
The next barrier awaits at the aforesaid $1750 mark, above which the March 1 high at $1760 could be challenged.
The Relative Strength Index (RSI) has eased off highs while trending within the overbought region, suggesting that the price could see a minor pullback before it resumes the recovery momentum.
Gold Price Chart: One-hour
On the flip side, the bullish 21-HMA at $1728 could offer some temporary support to the buyers.
The next downside target for the bears is seen at $1719, the upward-sloping 50-HMA. Further south, the 200-HMA cushion at $1715 could be put to test.
|Today last price||1739.50|
|Today Daily Change||13.51|
|Today Daily Change %||0.78|
|Today daily open||1725.54|
|Previous Daily High||1726.37|
|Previous Daily Low||1708.22|
|Previous Weekly High||1759.98|
|Previous Weekly Low||1687.37|
|Previous Monthly High||1871.9|
|Previous Monthly Low||1717.24|
|Daily Fibonacci 38.2%||1719.44|
|Daily Fibonacci 61.8%||1715.15|
|Daily Pivot Point S1||1713.72|
|Daily Pivot Point S2||1701.89|
|Daily Pivot Point S3||1695.57|
|Daily Pivot Point R1||1731.87|
|Daily Pivot Point R2||1738.19|
|Daily Pivot Point R3||1750.02|