- Gold is trading in positive territory for the third day in a row.
- The next significant resistance for gold is at $ 1,745.
- Sellers could look to take control if XAU / USD falls below $ 1,720.
After closing the previous two trading days in positive territory, the pair XAU / USD it rose to its highest level in more than a week at $ 1,739 on Thursday. Although the pair appears to have entered a consolidation phase ahead of the US session, the technical outlook suggests that it could extend its recovery to the $ 1,745 area. At time of writing, gold was up 0.47% on the day at $ 1,734.90.
Gold technical outlook
On the four-hour chart, the Relative Strength Index (RSI) indicator remains below 70, suggesting that there is more room for gold to the upside before it becomes technically overbought in the near term. The initial target could be seen at $ 1,745 (Fibonacci retracement 38.2% of the February-March decline) before $ 1,750 (100-period SMA). A decisive break through the latter could open the door for further gains towards $ 1,765 (50% Fibonacci retracement).
On the downside, $ 1,720 (Fibonacci 23.6% retracement) lines up as a key support. If the sellers manage to drag the price below that level, the next support is located at $ 1,710 (20-period SMA, 50-period SMA) before $ 1,700 (psychological level).
Additional levels
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