Gold Price Analysis: XAU/USD recovers from 2.5-month low

Gold trades near $1,782 per ounce at press time, having reached a low of $1,769 – the lowest level since Nov. 30. 

The hourly chart shows a bullish divergence of the Relative Strength Index, which occurs when an indicator forms higher lows, contradicting lower lows on the price chart. The pattern is widely considered a sign of temporary bear fatigue and often yields a corrective bounce. 

Therefore, the focus is on the descending 50-hour Simple Moving Average hurdle, currently at $1,796. 

A break below the Asian session low of $1,775 would validate Wednesday's bearish close under $1,785 and open the doors for a slide to $1,764 (Nov. 30 low). 

Hourly chart

Trend: Corrective bounce

Technical levels