Gold is striving to consolidate its latest gains after a fall in US yields last week. After having established a solid support base at 1677, the price has rallied back to March’s high at 1757.
A bullish breakout could lead to a sharp recovery as a result of triggering stop-losses and momentum buying.
But for now, an overbought RSI has prompted profit-taking within the supply area. 1730 is the first line of defense as the metal pulls back to rebuild support.
A deeper correction may lead to test 1710.