Gold Price Analysis: Near-term rally stalls below $1,740 resistance area.

• XAU/USD two-day rally stalls below resistance area at $1,740.
• Gold prices lose momentum as market sentiment brightens.

XAU/USD's two-day rally from week lows at $1,661 hit on Tuesday has taken a breather on Friday, after hitting resistance area at $1,740. The 4-hour chart shows gold prices breaking below the positive trendline supporting the pair during the last two days, to start a consolidative phase, moving below the mentioned $1,740 and so far, steady above $1,700.

The precious metal has rallied this week, with the investors rushing for safety with oil prices collapsing and macroeconomic data starting to show the impact of the COVID-19 shutdown in the world's major economies.

Gold prices seem to have taken a breather on Friday, with US dollar losing steam and equity markets staging a solid rebound, which has eroded bullion’s strength.  

XAU/USD lies now capped below April 16 high and below the former support trendline which could turn into resistance now, in the area of at $1,740. Above here, the pair might find resistance at $1,747 (April 14 high) before aiming for October 2012 high at $1,795.

XAU/USD 4-hour chart

XAU/USD key levels to watch