Gold Price Analysis: $1735 is the level to beat for XAU/USD bulls

• Gold off highs as US dollar trims losses, despite risk-on.
• Technical set up favor XAU bears in the near-term.
• Cautious Powell, weak US data to help bulls clear $1735?

The solid recovery staged by Gold (XAU/USD) from near 1700 levels lost leg once again below the critical resistance at 1735, as the prices look to extend the reversal heading into European trading.

At the press time, gold trades modestly flat around 1726.50 levels, having breached the crucial resistance-turned-support at 1727.35, the confluence of the 50 and 100-hourly Simple Moving Average (HMA).

Sellers look for entry below the latter, with the next target seen at the 21-HMA, now located at 1721.51. Should the bulls fail to defend the 21-HMA support, the horizontal 200-HMA at 1714.56 could be put to test en route Monday’s low of 1704.28.

The hourly Relative Strength Index (RSI) has turned south and looks to test the midline, justifying the recent downtick in the price.

Alternatively, fresh upside attempts could meet supply around the 1730 mark. Meanwhile, the bulls need to take out the horizontal resistance at 1735 to call for a bullish reversal in the near-term.

Gold: Hourly chart

Gold: Additional levels