Gold (XAU/USD) is extending its rebound from Wednesday’s low of $1733, looking to recapture the $1750 psychological barrier ahead of the all-important US Retail Sales report. The renewed uptick in gold is mainly driven by a pause in the tepid bounce staged by the US dollar earlier in the Asian session. Further, a retreat in the US Treasury yields amid a cautious market mood also underpins the non-yielding gold.
Adding to it, the prospects of the US sanctioning the Russian debt tempers the appetite for riskier assets while benefiting the safe-haven gold. Meanwhile, ongoing US-China tensions also render supportive to the yellow metal. If the upside break materializes, XAU bulls could attempt another run to recapture the $1750 psychological level, above which the horizontal trendline (orange) resistance at $1758 could be tested.