Gold price advanced toward $1,760 during the European trading hours but lost its bullish momentum. As the benchmark 10-year US Treasury bond yield holds steady at around 3.7%, XAU/USD stays in a consolidation channel slightly above $1,750.
Gold price failed to resist above $1,747 on Monday, which is the 23.6% Fibonacci Retracement (Fibo) level of the latest rally from the November 3 bottom at $1,617.
The move lower also prompted Gold price to settle the day below the rising (dashed) trendline support, then at $1,744.
Buyers, however, found support once again near the $1,740 region, triggering a recovery rally above the $1,750 level this Tuesday.
In doing so, Gold price has recaptured the 23.6% Fibo level and the rising trendline support-turned-resistance, now at $1,747 and $1,749 respectively.
The next upside barrier is seen at the $1,660 round figure. Acceptance above the latter is critical to unleashing the additional recovery toward $1,770.
The 14-day Relative Strength Index (RSI) is inching higher above the midline, justifying the renewed upside.
On the flip side, the downside will likely remain cushioned so long as the $1,740 mark is defended. The bullish 21-Daily Moving Average (DMA) at $1,728 will be next in play.
The $1,722 strong support will be the level to beat for Gold bears. That level is the confluence of the 38.2% Fibo level and the November 23 low.
Source- FxStreet
