- Gold is up after closing in negative territory last week.
- A breakout above $ 1,783 could open the door for additional gains.
- Initial support for XAU / USD sits at $ 1,775.
The pair XAU / USD it suffered heavy losses from rising US Treasury yields last Thursday and ended the week in negative territory. With the dollar struggling to find demand on Monday, the pair turned north and was last seen gaining 0.45% on the day at $ 1,780.
Later in the session, IHS Markit and ISM will release the April US Manufacturing PMI reports. Additionally, FOMC President Jerome Powell will deliver a speech at 18:20 GMT.
Gold technical outlook
On the four-hour chart, the Relative Strength Index (RSI) indicator is climbing towards 60, suggesting that the XAU / USD has more room to the upside before it is technically oversold.
$ 1,783 (Fibonacci 23.6% retracement of the last uptrend) lines up as the initial hurdle ahead of $ 1,790 (static resistance and $ 1,800 (psychological level). Supports, on the other hand, are located at $ 1,775 (Fibonacci 38.2% retracement / 20-period SMA), $ 1,767 (50% retracement / 100-period SMA) and $ 1,760 (61.8% Fibonacci retracement).
Additional levels
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