- Gold is moving toward $ 1,750 amid a golden cross on the 1-hour chart.
- The overbought conditions on the RSI warrant caution, as the critical level is challenged.
- XAU / USD investors turn their attention to US data and Biden’s speech, as they extend a three-day winning streak.
Gold (XAU / USD) is approaching the psychological level of $ 1,750 amid a widespread sell-off of the US dollar, as Treasury yields resume their corrective declines.
The approval of the US stimulus and fears of receding inflation do not bode well for rates, which in turn benefits underperforming gold.
From a short-term technical perspective, the 1-hour chart for gold has confirmed a golden cross that follows a strong bullish move. A golden cross is represented when the 50 hour moving average crosses the 200 hour moving average from below.
Although the XAU bulls need to break above the horizontal trend line resistance (orange) at $ 1,741 to unleash the additional gains.
The next barrier awaits at the aforementioned $ 1,750 level, above which the March 1 high of $ 1,760 could be challenged.
The RSI has retraced from the highs while trending within the overbought region, suggesting that the price could experience a minor pullback before resuming the recovery momentum.
On the other hand, the bullishly sloping 21-hour SMA at $ 1,728 could offer some temporary support to buyers.
The next downside target for the bears is seen at $ 1,719, where the upward sloping 50 hourly SMA is located. Further down the support of the 200 hourly SMA at $ 1,715 could be tested.
Gold 1 hour chart
Gold technical levels
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