Gold: a test of $1,650 emerges on the horizon – UOB

Pablo Piovano FXStreet

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 .

Key Quotes

“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”.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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