- The 1 hour chart shows the breakout of a descending wedge, supporting the bounce.
- A pullback in Treasury yields saves the day for the XAU bulls.
- The RSI is moving flat around the midline, while the 21-hour SMA offers support.
Gold (XAU / USD) maintains recovery gains at the start of the European session on Thursday, showing some signs of life amid a pullback in US Treasury yields.
For the rest of the day, the rally in gold could regain traction, as the short-term technical outlook suggests.
Gold 1 hour chart
Gold has broken a falling wedge on the 1 hour chart, after which it has recovered to the 21 hour moving average at $ 1,780.
The RSI is moving flat around the midline, offering no clear directional bias, for now.
On the upside, the downtrend 50 hourly SMA at $ 1,793 could challenge buyer engagement. Higher up, the January low could be tested at $ 1,803.
On the other hand, a breakout of the 21-hour SMA and resistance in the pattern, now turned into support at $ 1,773, could halt the decline.
Lower down, Wednesday’s low of $ 1,770 could defend the November 30 low of $ 1,765.
Gold technical levels
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