Gold Price Analysis: Lower high, overbought RSI check buyers inside short-term rising channel
|- Gold buyers catch a breath after rising heavily to the fresh 11-year top during the last two days.
- MACD and RSI both favor a pullback while the latest lower highs on the hourly chart support the argument.
- An upward sloping trend channel from Tuesday keeps pleasing the bulls.
Gold prices stay mildly positive around $1,621 during early Friday. The yellow metal has been flashing a lower high formation since its pullback from $1,623.80 while MACD is also likely turning negative. Further to support the odds of a pullback are RSI conditions that signal a halt to the additional upside.
As a result, the bullion may decline to Wednesday’s high of $1,613 while the support line of a short-term rising channel, at $1,611 can question extra downside.
If at all the quote dips below $1,611, $1,605 and $1,600 can entertain the bears ahead of recalling the early-week levels surrounding $1,584/83.
Meanwhile, an upside break of $1,623 can trigger fresh run-up towards the channel resistance of $1,627.
During the precious metal’s additional rise past-$1,627, the rising trendline connecting highs marked during September 20119 and January 2020, close to $1630/31, will be in the spotlight.
Read: Gold Price Analysis: Path of least resistance is up, $1,626 next target – Confluence Detector
Gold hourly chart
Trend: Pullback expected
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.