• Gold regains bullish momentum to approach $1,800.
• Risk appetite and sideways US treasury yields hurt the USD.
• XAU/USD pushing against $1,780/85 resistance area.

Gold futures have bounced higher on Wednesday, favored by broad-based US dollar pullback, amid a higher appetite for risk. The yellow metal has appreciated about $20 so far today, after having remained flat, near $1.760, during the previous two days.

The dollar falters with investors focusing on quarterly earnings

Bullion has regained upside traction on Wednesday, amid a weaker US dollar, with upbeat earnings from the Healthcare sector buoying appetite for risk and easing concerns about supply chain disruptions and surging inflation. Wall Street is trading with moderate advances, while the US Dollar Index, which measures the greenback's value against the most traded currencies has extended its retreat to 93.50 area, 1% below the one-year high, at 94.50 reached last week.

Furthermore, the recent US Treasury bonds' rally fuelled by increasing expectations of imminent QE tapering, seems to have paused. Other major central banks, namely the Bank of England and the Bank of Canada, are coming under increasing pressure to protect their economy against the impact of surging consumer prices and are forcing the Federal Reserve away from the limelight.

XAU/USD is pushing against the $1.770/80 resistance area

The pair has appreciated about 1% so far today and is trying to confirm above $1,780/85 resistance area (September 22 and October 8 highs) ahead of $1,807 (Sept. 15 high) which would expose July and September’s peak. At $1.830,

On the downside, immediate support lies at $1.760 area (October 18 low). Below here, the pair might extend losses to $1,745 (October 6 low), to face, then, a key support area at $1,725 (September 29, 30 low).

Technical levels to watch