Gold Price Analysis: XAU/USD consolidates Tuesday's gains below $1,720 resistance

• XAU/USD is struggling to build on Tuesday's strong gains.
• Key resistance for gold is located at $1,720.
• Buyers could look to defend $1,700 if XAU/USD loses traction.

The XAU/USD pair gained nearly 2% and closed at $1,715 before going into a consolidation phase on Wednesday. As of writing, the pair is down 0.2% on a daily basis at $1,712.

Gold technical outlook

The Relative Strength Index indicator on the four-hour chart is moving sideways near 50, suggesting that the pair is having a difficult time determining its next near-term direction. 

On the upside, $1,720 (Fibonacci 23.6% retracement of the February-March drop, march 9 high) aligns as a key resistance. Unless XAU/USD manages to make a daily close above that level, sellers could start dominating the pair's action. Other hurdles could be seen at $1,740 (static level) and $1,745 (Fibonacci 38.2% retracement).

The immediate support is located at $1,700 (psychological level/20-period SMA on the four-hour chart) ahead of  $1,680 (March 8 low).

Additional levels to watch for