Gold Technical Analysis: Witnessing oversold bounce as expected

Omkar Godbole FXStreet Contributor

Gold is witnessing an oversold or corrective bounce in Asia, as expected, with prices currently trading at $1,278 per Oz. The 0.19 percent gain on the day could be extended further to $1,281-$1,285 resistance range, as the 1H relative strength index (RSI) is now reporting bullish conditions with an above-50 print.

Further, the bullish divergence of the 4-hour chart RSI, confirmed last week, is now looking more pronounced with the indicator closing on 50 levels.

Any gains to $1,281-$1,285 range, however, could be short-lived, as the last week's US retail sales and jobless claims have weakened prospects of a recession in the world's biggest economy, meaning the American dollar will likely remain bid in the next few days, capping gains in the yellow metal.

Further, the longer duration charts are biased bearish, as discussed in the weekly gold report.

4-hour chart

Trend: oversold bounce

XAU/USD

Overview
Today last price	1278.24
Today Daily Change	3.81
Today Daily Change %	0.30
Today daily open	1274.43

Trends
Daily SMA20	1294.71
Daily SMA50	1303.99
Daily SMA100	1290.01
Daily SMA200	1249.22

Levels
Previous Daily High	1277.72
Previous Daily Low	1271.35
Previous Weekly High	1292.05
Previous Weekly Low	1271.1
Previous Monthly High	1327.8
Previous Monthly Low	1280.1
Daily Fibonacci 38.2%	1275.29
Daily Fibonacci 61.8%	1273.79
Daily Pivot Point S1	1271.28
Daily Pivot Point S2	1268.13
Daily Pivot Point S3	1264.9
Daily Pivot Point R1	1277.65
Daily Pivot Point R2	1280.88
Daily Pivot Point R3	1284.03

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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