- Gold is rising as the US dollar rebound loses steam.
- US Treasury yields recede ahead of retail sales release.
- The XAU / USD is looking for the breakout of a symmetrical triangle on the 1 hour chart.
Gold (XAU / USD) is extending its rebound from Wednesday’s low of $ 1,733 and looking to regain the psychological barrier of $ 1,750 ahead of the all-important US Retail Sales report.
The renewed rally in gold is mainly due to a pause in the tepid rebound in the US dollar earlier in the Asian session. Additionally, a pullback in US Treasury yields, amid cautious market sentiment, also underpins gold prices.
Furthermore, the prospect of the US sanctioning Russian debt dampens investors’ appetite for riskier assets while benefiting gold as a safe haven. Meanwhile, continuing tensions between the United States and China also support the yellow metal.
Technically, gold is about to confirm the breakout of a symmetrical triangle on the 1 hour chart should the price close above the resistance of the downtrend line at $ 1,743.
If the breakout to the upside materializes, the XAU bulls could attempt another move to regain the psychological level of $ 1,750, above which the resistance of the horizontal trend line (orange) at $ 1,758 could be tested.
The RSI supports the scenario for a further rally as it is pointing to the upside at the 58 level at time of writing.
However, if the bears manage to regain control, the precious metal could pull back towards a critical confluence support area at $ 1,739, comprising the downtrend 50, 100 and 200 hourly moving averages.
The next relevant support is seen at the ascending trend line (triangle), currently at $ 1,736.
A sustained break below this level could trigger a breakout of the triangle, opening the doors for a test of the April 13 low at $ 1,724.
Gold 1 hour chart
Gold technical levels
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