- Gold fell below $ 1,740 during US trading hours.
- The recovery in US Treasury yields weighed on the XAU / USD on Wednesday.
- The next support lines up at $ 1,730 before $ 1,725.
After climbing to the $ 1,750 area earlier in the day, the XAU / USD pair lost its traction during the US session and was last seen trading at $ 1,735, shedding 0.45% on the day. Despite the widespread selling pressure surrounding the dollar, an observed increase of more than 1% in the yield of US Treasuries is making it difficult for investors to be attracted to gold.
Gold technical outlook
On the four-hour chart, the Relative Strength Index (RSI) indicator fell slightly below 50, suggesting that the pair is struggling to gain bullish momentum. On the downside, the next support is at $ 1,730 (Fibonacci retracement of 38.2% from the March 31-April 8 rally, 100-period SMA) and $ 1,725 ​​(200-period SMA) and $ 1,720. (static level, 50% Fibonacci retracement).
Should gold manage to stay above $ 1,730, it could retest $ 1,740 (Fibonacci retracement 23.6%) and continue to push towards $ 1,750 (daily high, static level). Additional gains are likely at $ 1,758 (April 8 high) if XAU / USD makes a daily close above $ 1,750.
Technical levels
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