- XAU / USD registers a strong rally on Tuesday, advancing above $ 1,700.
- The next key resistance for gold is at $ 1,720.
- Sellers could look to regain control if gold falls below $ 1,700.
The pair XAU / USD It fell to its lowest level since early June 2020 at $ 1,676 on Monday, but reversed its course with the dollar under heavy selling pressure. At time of writing, gold is trading at $ 1,716, up nearly 2% on the day.
Gold technical outlook
The Relative Strength Index (RSI) indicator on the daily chart is moving above 30 on Tuesday, but remains below 50, suggesting that the daily rally is a technical correction from the latest drop.
On the positive side, the initial obstacle is located at $ 1,720 (23.6% of the Fibonacci level of the February-March fall, daily maximum). A daily close above that level could open the door for further gains towards the next Fibonacci resistance (38.2%) at $ 1,745 before $ 1,760 (20-day SMA).
On the other hand, sellers could look to regain control of gold if the price falls below $ 1,700 (psychological level) and then targets $ 1,680 (March 8 low).
Additional levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
