Technical Analysis: Gold stays positive above 21-day SMA, two-week-old supportline
Despite recently orchestrated risk reset, gold prices remain modestly bid near the six-week high. While overbought RSI conditions favor intermediate pullbacks, the bullion is overall strong enough to challenge the yearly top surrounding $1612. Should there be a further upside beyond $1612, 61.8% FE level of $1638 will be on the bulls' radars.
During the pullbacks, as indicated by RSI, the early-month top surrounding $1593 can act as immediate support. However, sellers will refrain to enter unless breaking a confluence of 21-day SMA, 23.6% Fibonacci retracement and a two-week-old rising support line, near $1574/72. If at all the yellow metal slip beneath $1572 on a daily closing basis, the return of $1547 and $1535 can't be denied.