Gold rally stalls at $1710 previous support level

• Gold rally from Tuesday's low at $1661 finds resistance at $1710.
• XAU/USD recovery loses steam with the US dollar gaining momentum.

Gold prices have posted a sharp rally over the last two days, appreciating nearly 3% after bouncing at $1661 on Tuesday, to hit a five-day high at $1710 where the XAU/USD seems to have stalled.

Gold loses steam as the US dollar picks up

The precious metal has extended its rebound earlier today, favoured by a somewhat softer US dollar, amid a more positive market sentiment. With European stocks posting gains after two consecutive days in red and oil prices picking up from historic lows the dollar has given away ground across the board.

XAU/USD, however, seem to have lost steam after having hit resistance at $1710, a previous support level turned resistance. The US dollar is picking up during the US trading session, especially against the euro, which might be weighing on gold prices.

XAU/USD capped below $1710 resistance area

The gold rally from $1661 has found resistance at $1710 (April 14, 15 lows) although, so far, the pair remains steady above previous highs at $1700. On the upside, above the mentioned high, gold might encounter resistance at $1720 (Intra-day high, April 17 high) and then probably $1738 (April 16 high) before attempting long-term resistance at $1746.

XAU/USD technical levels to watch