Gold Price Analysis: Pulls back amid overbought RSI, multiple upside barriers ahead

Gold prices step back from the multi-month top.
Early-month high acts as the immediate support, March 2013 top offers nearby resistance.
A downside break of $1,572 will confirm broad bearish formation.

Anil Panchal FXStreet

Gold prices decline to $1,606 during the early Thursday. The yellow metal surged to the highest since March 2013 the previous day but failed to hold onto gains due to the overbought RSI conditions.

As a result, sellers are now awaiting a downside break of $1,600 to aim for the early-month high nearing $1,594.

However, 21-day SMA and an upward sloping trend line from December 2019, around $1,577 and $1,572 respectively, will limit the bullion’s further declines.

It should be noted that the precious metal’s downside past-$1,572 will confirm a broad bearish rising wedge formation and can trigger a fresh down-leg towards the late-2019 area.

On the upside, March 2013 high near $1,617 acts as the immediate resistance ahead of the rising trendline connecting highs marked during September 20119 and January 2020, close to $1630/31.

Gold daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1606.76
Today Daily Change	-6.21
Today Daily Change %	-0.39%
Today daily open	1612.97

Trends
Daily SMA20	1575.88
Daily SMA50	1544.59
Daily SMA100	1512.65
Daily SMA200	1470.88

Levels
Previous Daily High	1613
Previous Daily Low	1599.56
Previous Weekly High	1584.36
Previous Weekly Low	1561.99
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1607.87
Daily Fibonacci 61.8%	1604.69
Daily Pivot Point S1	1604.02
Daily Pivot Point S2	1595.07
Daily Pivot Point S3	1590.58
Daily Pivot Point R1	1617.46
Daily Pivot Point R2	1621.95
Daily Pivot Point R3	1630.9

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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