- Gold bears extend their grip amid rising Treasury yields and a firmer USD.
- XAU / USD is looking to test the $ 1,760 level amid the breakout of an ascending wedge on the 1-hour chart.
- All attention remains on the all-important FOMC decision
The price of gold (XAU / USD) is extending Tuesday’s slide towards the $ 1,760 region after having faced rejection once again at higher levels.
Yields on US Treasuries continue to rally on expectations of an optimistic outlook from the Fed on the economy, which could likely boost expectations of a tightening of monetary policy in the coming months. The increase in the yield of the US rate benefits the USD and puts pressure on the prices of gold, denominated in dollars.
From a short-term technical perspective, gold is now targeting the $ 1,762-60 support area, as the technical setup on the 1-hour chart remains in favor of the bears.
The XAU / USD has shown the breaking of an ascending wedge on the 1 hour chart, exposing the measured target of the pattern near $ 1,760.
Additionally, bears have been inspired after the 21-hour moving average has cut below the 50 and 200-hour SMAs, representing a bearish crossover.
The RSI has entered the oversold region, which suggests that the decline could stop at that level.
However, the psychological level of $ 1,750 could enter the scene if it fell to gain traction.
On the other hand, any pullback could challenge the bearishly sloping 21-hour SMA at $ 1,775. Higher up, powerful resistance awaits at $ 1,780. That level is the convergence of the 100 and 200 hourly SMAs.
Higher up, Tuesday’s high of $ 1,786 could be retested.
Gold 1 hour chart
Gold additional technical levels
.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
