Technical Analysis: Gold confronts 11-month-old resistance line amid overbought RSI

Technical Analysis: Gold confronts 11-month-old resistance line amid overbought RSI

Having refreshed the highest levels since October 2012 the previous day, Gold prices remain on the front foot. However, an upward sloping resistance line stretched since August 2019, at $1,792 now, question the bullion's further upside amid overbought RSI conditions. If at all the bulls manage to ignore immediate resistance line and RSI signals, $1,800 round-figures and the late-2011 top close to $1,805 will be the key upside barriers follow afterward. During the precious metal's rise beyond $1,805, the early-August 2011 high near $1,875 could lure the buyers before the $1,921.05 landmark.

Meanwhile, $1,765 could offer immediate support during the quote's U-turn. However, sellers may not risk entries unless witnessing a clear break below an ascending trend line stretched from the early-March, currently around $1,726.50. Given the gold price weakness below the short-term key support line, odds of witnessing a sub-$1,700 level back to the chart can't be ruled out.

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