- Gold challenges the key downtrend line hurdle on the 1 hour chart.
- Treasury yields are holding up, making it a tall order for gold bulls.
- The RSI turns lower but remains above 50, which keeps the bulls hopeful.
Gold (XAU / USD) is struggling to extend its recovery from the seven-month lows at the beginning of the European session on Monday, while the resistance of the two-week-old downtrend line on the 1-hour chart at $ 1,795 tests bulls’ commitment.
However, a bullish crossover, with the 21-hour moving average having crossed above the 50-hour SMA, favors the further rally.
Gold 1 hour chart
Gold has regained the downtrend 100 hourly SMA at $ 1,787 and remains well above this level, adding credibility to additional gains.
Acceptance above the aforementioned critical resistance could propel a sharp rally towards the downslope 200 hourly SMA at $ 1,809. Before that, the January low of $ 1,803 could be challenged.
On the other hand, the 100 hourly SMA could now offer immediate support, below which the 21 hour SMA at $ 1,783 could come to the rescue of buyers.
Lower down, the horizontal 50-hour SMA at $ 1,779 would enter the scene.
Gold additional levels
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