Gold Price Analysis: Approaching key resistance area at $1,740

• Gold extends rally to reach resistance area at $1,740.
• XAU/USD in track to a 4% rally over the last two days.
• FX experts at TD securities see gold prices targeting $1,900.

Gold has rallied further on Thursday, as the evidence of the global economic impact of the COVID-19 lockdown starts to emerge. Bullion has extended its current rally from $1,661 lows on Tuesday, to reach resistance area at $1,740 and is on track to a 4% appreciation over the last two days.

From a technical point of view, intra-day charts show the XAU/USD standing on an upward trending support line from Tuesday’s low at $1,661 which is offering support right now at $1,720.

On the upside, the yellow metal has reached a relevant resistance level at $1,740, which capped the pair on April 14 and 16. If XAU/USD manages to break above that level, the next targets would be $1748 before aiming towards October 2012 high at $1,796.

In a wider perspective, FX and commodities experts at TD Securties see XAU/USD appreciating well above the mentioned levels, boosted by the stimulus measures of the major central banks “We buy gold at $1710/oz, targeting $1900/oz in anticipation of continued growth in investment demand amid massive and prolonged unconventional central bank stimulus.”

XAU/USD key levels to watch