Blog post

Technical Analysis: Overbought RSI conditions check Gold buyers at multi-year top

Gold prices recently crossed a multi-year-old rising trend-channel and extended the north-run to the highest since April 2013. However, overbought conditions of RSI on monthly chart and nearness to other key resistances, namely 23.6% Fibonacci retracement and 2012 top, seem to favor the odds of the Bullion's pullback. In doing so, sellers will look for entry below resistance-turned-support, near $1538 to aim for November month low near $1445.

Meanwhile, March month high of $1617, 23.6% Fibonacci retracement level of $1630 and the year 2012, around $1800 will be on the buyers' radar. If so happens, chances can't be ruled out to witness a level beyond 2011 high of $1921.

Join us on FB and Twitter to stay updated on the latest market events.