- The XAU / USD falls sharply during US trading hours.
- The next short-term support for gold could be seen at $ 1,818.
- The RSI indicator on the one-hour chart fell below 30.
The XAU / USD pair came under strong selling pressure during European trading hours and fell to a daily minimum of $ 1,823. The USD’s renewed strength amid rising US Treasury yields appears to be weighing on the pair, which was last seen shedding 1% on the day at $ 1,825.
Gold technical outlook
With the latest drop, the price of gold fell below the 100 hourly and 200 hourly SMAs and sellers could look to maintain control of the XAU / USD action unless the pair manages to regain those levels. Meanwhile, the Relative Strength Index (RSI) indicator on the same chart fell back below 30, suggesting that there could be a technical correction before the next leg down.
The area of ​​1,830 / 33 (100-hour SMA / 200-hour SMA) lines up as initial resistance before reaching $ 1,840 (50-hour SMA) and $ 1,855 (daily high).
On the downside, 1.818$ (static level) could be seen as the next target in case the bearish momentum remains intact. Below that level, the next support is at $ 1,810.
Technical Levels
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