- XAU / USD is still on track to post small daily losses on Tuesday.
- Rising US Treasury yields weigh on gold.
- The technical outlook remains neutral as the price fluctuates between the key Fibonacci levels.
The pair XAU / USD It managed to close the first day of the week in positive territory, but struggled to gain bullish momentum on Tuesday. In the absence of important fundamentals, rising US Treasury yields appear to be making it harder for gold to find demand. At the moment, the pair is shedding 0.25% on the day at $ 1,777 and the benchmark 10-year US Treasury yield is up 1%.
Gold technical outlook
Despite Tuesday’s modest drop, technical indicators do not point to a build-up in bearish momentum. On the four-hour chart, the Relative Strength Index (RSI) indicator continues to move sideways around 50, reaffirming XAU / USD’s indecision.
Additionally, recent price action appears to have formed a horizontal channel on the same chart, suggesting that the next directional hint from gold will be received if the price manages to close within four hours outside that trading band.
On the downside, initial support sits at $ 1,775 (Fibonacci retracement 61.8% of the last uptrend) before $ 1,760 (Fibonacci retracement 61.8% / 100-period SMA). Resistances, on the other hand, sit at $ 1,780 (20-period SMA / 50-period SMA), $ 1,783 (Fibonacci retracement of 23.6%).
Technical levels
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