Gold Price Analysis: XAU/USD wavers above $1,700 despite Friday’s Doji, oversold RSI probe bears

Gold prints the heaviest gains in a week after candlestick formation, RSI conditions favor corrective pullback.
Bulls have a long way to go before convincing markets, seven-month-old support line lure bears.

Anil Panchal FXStreet

Gold prices pick up bids near $1,708, up 0.57% intraday, while heading into Monday’s European session open. In doing so, the quote extends Friday’s bounce off the nine-month low.

Given the oversold RSI conditions joining hands with Friday’s Doji candlestick pattern, suggesting a trend reversal, gold is up for a further corrective pullback.

However, a descending trend line from November 30, at $1,760 now, will be a tough nut to crack for gold buyers.

Meanwhile, the $1,700 threshold can offer immediate support before directing gold sellers towards a descending trend line from August 12, 2020, at $1,677 now.

If at all gold sellers aren’t tired below $1,677, June 2020 low near $1,670 and January 2020 peak surrounding $1,610 should return to the chart.

To sum up, gold needs to convince buyers but short-term bounce can’t be ruled out.

Gold daily chart

Trend: Further recovery expected

Additional important levels

Overview
Today last price	1707.8
Today Daily Change	9.60
Today Daily Change %	0.57%
Today daily open	1698.2

Trends
Daily SMA20	1779.02
Daily SMA50	1829.15
Daily SMA100	1848.59
Daily SMA200	1860.11

Levels
Previous Daily High	1707.76
Previous Daily Low	1687.37
Previous Weekly High	1759.98
Previous Weekly Low	1687.37
Previous Monthly High	1871.9
Previous Monthly Low	1717.24
Daily Fibonacci 38.2%	1699.97
Daily Fibonacci 61.8%	1695.16
Daily Pivot Point S1	1687.79
Daily Pivot Point S2	1677.39
Daily Pivot Point S3	1667.4
Daily Pivot Point R1	1708.18
Daily Pivot Point R2	1718.17
Daily Pivot Point R3	1728.57

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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