- Gold stalls the rebound as the US dollar firm up on the session.
- Death cross on the 4H chart keeps gold exposed to downside risks.
- RSI has recovered from the oversold region but remains below 50.00.
Amid the latest leg higher in the US dollar, gold price is feeling the pull of gravity once again, as it stalls its recovery near $1738 from overnight lows of $1724.
The cautious market mood paired with the Fed’s early taper bets keeps the demand for the US dollar alive while the Treasury yields stabilize after the recent retreat.
Meanwhile, gold price fails to take advantage of the optimism from the US stimulus, with the Senate due to vote on the passage of President Joe Biden’s $1 trillion infrastructure bill.
Gold traders keep an eye on the broader market sentiment, covid updates and dynamics in the dollar for fresh trading impetus, in absence of significant economic data from the US.
Gold Price Chart: Four-hour
Gold price is facing stiff resistance around the $1738 area, recalling sellers amid confirmation of a death cross on the four-hour chart.
The downward-sloping 50-Simple Moving Average (SMA) cut the horizontal 200-DMA from above, flashing a bearish signal.
The recovery faltered thereafter, as gold bears now target the NY lows at $1724.
On a sustained move lower, the $1700 round figure could be put to test, opening floors towards the five-month troughs below the latter.
The Relative Strength Index (RSI) has recovered from the oversold territory but remains well below the midline, currently at 32.16, suggesting that the downside is likely to resume.
On the flip side, acceptance above $1738 could call for a retest of the $1750 psychological level.
Further up, the bearish 21-SMA at $1765 will be on the buyers’ radar should the recovery regain traction.
Gold: Additional levels to consider
Read More: XAU/USD spots death cross on 4H chart, $1700 remains in sight