Gold Technical Analysis: Nears YTD high of $1,326, weekly RSI highest since September 2011

Omkar Godbole FXStreet Contributor

Gold is fast closing on a year-to-date high of $1,326 reached on Jan. 31 and may break higher toward $1,354 (100-month moving average) if trade optimism continues to hurt the US dollar.

The 14-week relative strength index (RSI), however, has jumped to 71.06 - the highest level since 2011. That is also the first above-70 (overbought) reading since July 2016.

An overbought RSI indicates a minor pullback could be in the offing before a convincing break above the year-to-date high of $1,326 unfolds.

4-hour chart

Weekly chart

Trend: bullish

1. R3 1343.78
2. R2 1333.17
3. R1 1327.13
PP 1316.52
1. S1 1310.48
2. S2 1299.87
3. S3 1293.83

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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