Gold price analysis: Turns lower from $1,730


  • Gold's hourly chart is reporting a bearish divergence of the RSI. 
  • A minor pullback may be seen before an extension of the recent rally.

Gold has pulled back from the seven-year high of $1,730 and could witness a deeper pullback to the former hurdle-turned-support of $1,703, as the hourly chart is reporting a bearish divergence of the relative strength index. 

A bearish divergence occurs when the indicator charts lower highs, contradicting higher highs on price and is widely considered an early indicator of bearish reversal. 

However, in this case, the bearish divergence has occurred on the hourly chart and indicates temporary bull fatigue. 

As a result, prices may pullback to $1,703 before posting stronger gains above $1,730. The yellow metal charted a big bullish candle on Monday and closed above $1,703 (March 9 high, previous seven-year high), reinforcing the bullish view and opening the doors for a continuation of the "V-shaped" rally from the March 20 low of $1,445.

Hourly chart

Trend: Pullback likely

Technical levels

XAU/USD

Overview
Today last price 1721.79
Today Daily Change 8.77
Today Daily Change % 0.51
Today daily open 1713.02
 
Trends
Daily SMA20 1596.45
Daily SMA50 1602.06
Daily SMA100 1558.87
Daily SMA200 1520.61
 
Levels
Previous Daily High 1723.36
Previous Daily Low 1680.04
Previous Weekly High 1690.42
Previous Weekly Low 1609.15
Previous Monthly High 1703.27
Previous Monthly Low 1451.3
Daily Fibonacci 38.2% 1706.81
Daily Fibonacci 61.8% 1696.59
Daily Pivot Point S1 1687.59
Daily Pivot Point S2 1662.15
Daily Pivot Point S3 1644.27
Daily Pivot Point R1 1730.91
Daily Pivot Point R2 1748.79
Daily Pivot Point R3 1774.23

 

 

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