- Gold’s 1 hour chart suggests the recovery is fading.
- The rise in Treasury yields outweighs the decline in the US dollar.
- The RSI has turned back down below the midline.
Gold (XAU / USD) is losing its recovery momentum from the European session, as renewed strength in US Treasury yields negates support from the falling US dollar.
Gold’s 1-hour chart points to the resumption of the recent downtrend, with bears targeting the seven-month lows of $ 1,761.
Gold 1 hour chart
As seen on the hourly chart, gold has failed to find acceptance above the resistance of the 21-hour moving average at 1.774$ on your way to recovery.
Therefore, sellers appear to have returned to the market and Thursday’s low of 1.768$ seems to be at risk now.
Further down, you could test the level of 1.760$, below which the support of the downtrend line at 1.758$ it could challenge the commitment of the bears.
The RSI on the 1-hour chart has turned down below the midline, which also suggests that selling pressure is intensifying once again.
On the other hand, a sustained move above the aforementioned 21-hour SMA is needed in 1.774$ to extend the bounce towards the 50 SMA in 1.779$.
Another relevant resistance is found in 1.790$, Thursday’s high.
Higher up, the bearishly sloping 100 hourly SMA at 1.793$ could challenge buyers’ commitment. Finally, the January low could be tested in 1.803$.
Gold additional levels
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