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.

Anil Panchal FXStreet

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

Additional important levels

Overview
Today last price	1620.39
Today Daily Change	0.74
Today Daily Change %	0.05%
Today daily open	1619.65

Trends
Daily SMA20	1578.73
Daily SMA50	1547.59
Daily SMA100	1513.8
Daily SMA200	1472.55

Levels
Previous Daily High	1623.79
Previous Daily Low	1603.94
Previous Weekly High	1584.36
Previous Weekly Low	1561.99
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1616.21
Daily Fibonacci 61.8%	1611.52
Daily Pivot Point S1	1607.8
Daily Pivot Point S2	1595.94
Daily Pivot Point S3	1587.95
Daily Pivot Point R1	1627.65
Daily Pivot Point R2	1635.64
Daily Pivot Point R3	1647.5

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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