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​Technical Analysis: Rising wedge, overbought RSI question Gold buyers

Although gold prices are near to the monthly top, a short-term rising wedge formation, coupled with overbought RSI conditions seems to challenge the buyers. As a result, the bullion may witness a pullback towards the formation support line of $1659. However, further downside below $1659 confirms the bearish formation and can drag the quote towards the monthly low of $1565. Though, a confluence of 200-bar SMA and 61.8% Fibonacci retracement around $1606 could restrict the yellow metal's further downside.

On the upside, a sustained beak beyond March month top surrounding $1703/04 could defy the bears and propel the safe-haven towards October 2012 top close to $1796. In the meantime, $1730 and $1755 can offer intermediate halts during the run-up from $1704 to $1796.

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