Quek Ser Leang from Global Economics & Markets Research at UOB Group noted that despite the Gold rally remains firm, a move to $1,650 looks unlikely for the time being .
“The price actions since late December appears to be similar to those in early June last year when the break of declining trend line resistance resulted in a rapid and sharp rally. While daily RSI is overbought now as in last June, only a breach of the rising trend line support would indicate that gold is ready to take a breather. In other words, further gold strength from here would not be surprising and only a breach of $1,530 would indicate that an interim top is in place”.
“On the upside, the ‘round-number’ resistance of $1,600 is acting as an ‘attraction’. While the next resistance level note above $1,600 is closer to $1,650, the already overbought conditions suggest this level could be out of reach, at least for the next couple of months”.
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