Technical Analysis: Gold battles key hurdle to $1,960 near fresh five-month top

Technical Analysis: Gold battles key hurdle to $1,960 near fresh five-month top

Risk-on mood propels gold prices to the fresh highs since January 08 during early Wednesday. However, multiple levels marked from July 2020 constitute the key hurdle around $1,907-08 and test the precious metal buyers by the press time. It’s worth mentioning that the RSI conditions are also overbought and suggest a pullback. Hence, failures to stay above the $1,900 round figure could drag the yellow metal back to late January 2021 tops near $1,875. Though, any further weakness will be tamed by a convergence of 200-day SMA and a falling trend line from August 2020, around $1,845-48.

On the contrary, gold buyers’ rejection to step back needs a daily closing beyond $1,908 to tap the yearly high near $1,960, also comprising November 2020 tops. It should, however, be noted that a bullion’s sustained trading past $1,960 will have multiple hurdles between $1,975 and $2,015, a break of which will not hesitate to test the 2020 peak surrounding $2,075.

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