Gold Price Analysis: XAU/USD embarking on a test of $1,720

• Gols is pressured by a falling euro and a stronger US dollar. 
• Risk-off favours the greenback ahead of the Congressional hearings.

Gold is trading at $1,726 at the time of writing. XAU/USD has travelled between a low of $1,724.75 and a high of $1,742.60 and is down some 0.67%.

Gold's safe-haven appeal has been done by that of the US dollar as rising COVID case numbers triggered lockdowns across several European countries, weighing on the euro.

Germany, France, and Italy have extended their lockdown measures this month.

Meanwhile, US yields fell in the wake of the joint appearance of Secretary Janet Yellen and Chairman Jerome Powell before the US House of Representatives.

Their prepared remarks reiterated previous messages that the recovery has been quicker than expected, but it has also been uneven and the output gap is unlikely to close until next year.

The Congressional hearings begin at 12 p.m. ET (1600 GMT).

At the time of writing, the US 10-year yield was 3.75% lower, at 1.63%. US equities were down, with the S&P 500 lower by 0.77% ahead of the closing bell.

''The yellow metal just can't benefit from the rise in inflation expectations,'' analysts at TD Securities explained. 

Gold technical analysis

The price is moving in on a daily area of support at this juncture and testing the bull's commitments ahead of $1,720. The conditions are bearish on the chart with the price below the parting 10 and 20 EMAs and Momentum slipping into negative territory. The price has also slipped below dynamic trendline support. A break of 1720 will be subject to a potential retest of the structure prior to lower lows to target the $1,650s.