Gold Price Analysis: XAG/USD eases from intraday top but bulls stay hopeful above 200-SMA

• Gold takes a U-turn after refreshing intraday high.
• MACD teases bulls as the quote stays above 200-SMA.
• Seven-week-old horizontal area tests bull’s commitment.

Gold trims intraday gains after reversing from $1,749.44, around $1,746 by the press time, amid Wednesday’s Asian session.

Although 50% Fibonacci retracement of late February to early March downside clutches the yellow metal, a successful reversal from 200-SMA and MACD divergence in favor of buyers signals the bullion’s further upside.

However, a clear break above $1,755-57 area comprising multiple levels marked since February 26 becomes necessary for the precious metal buyers to keep the reins.

During the pullback, $1,735 and 38.2% Fibonacci retracement level of $1,730 can entertain short-term sellers ahead of testing them with a 200-SMA level of $1,726.

Overall, gold is consolidation early 2021 losses but the recent building of upside momentum gains the market’s attention

Gold four-hour chart

Trend: Further recovery expected