Gold Price Analysis: All eyes on $1696 amid bullish MACD

Gold prices remain positive above March 2013 top.
The year 2013 high and late-2012 tops will be on the bull’s radar for now.
Overbought RSI can trigger intermediate pullbacks but major sellers will stay away unless prices dip below September 2019 peak.

Anil Panchal FXStreet

Gold prices rise 1.2% to $1,662 by the press time of the pre-European session on Monday. In doing so, the bullion stays positive above March 2013 top while also challenging the year 2013 high.

Following the metal’s sustained run-up beyond $1,696, high of 2013, highs marked during November and October 2012, respectively near $1,751 and $1,794 can please the bulls.

On the contrary, overbought RSI conditions favor a pullback to March 2013 top near $1,617. Though further declines seem doubtful as $1,600 and September 2019 top close to $1,557 will challenge the bears afterward.

Also likely to question the sellers below $1,600 will be 61.8% Fibonacci retracement of gold’s broad declines between October 2012 and November 2015.

It's worth mentioning that while RSI is in support of a corrective move towards the south, MACD is still flashing bullish signals and favor the buyers.

Gold weekly chart

Trend: Bullish

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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