Gold Price Analysis: XAU/USD bulls to have a bumpy road ahead, $1,765 in focus
- Gold prices probe two-day winning streak despite recent bounces off $1,747.81.
- May month high holds the key to further upside towards two-month-old resistance line.
- Sellers are less likely to enter unless breaking an ascending trend line from March 20.
Gold traders recover the latest losses while revisiting the day-start levels around 1,755 during the pre-European session on Tuesday. The bullion refreshed the monthly high the previous day. However, failures to cross the May month’s top push the sellers to search for opportunities to enter.
While $1,731 may offer immediate support to the precious metal during its fresh weakness, a confluence of 50-day SMA and a three-month-long rising trend line, around $1,718/17, becomes the key level to watch.
If at all the safe-haven slips below $1,717 daily, $1,700 and the monthly low near $1,670 will pop-up on the bears’ radars.
On the other hand, a successful rise past-$1,765 enables the bull to aim for a rising trend line from April 14, at $1,785 now, ahead of looking at the late-2012 top near $1,795/96.
In a case where the bulls refrain from respecting the $1,796 and hold the throne beyond $1,800 threshold, an upward sloping trend line from September 2019, near $1,808, will add bumps to the metal’s run-up.
Gold daily chart
Trend: Pullback expected