Gold Price Analysis: Pulls back amid overbought RSI, multiple upside barriers ahead

Gold prices step back from the multi-month top.
Early-month high acts as the immediate support, March 2013 top offers nearby resistance.
A downside break of $1,572 will confirm broad bearish formation.

Anil Panchal FXStreet

Gold prices decline to $1,606 during the early Thursday. The yellow metal surged to the highest since March 2013 the previous day but failed to hold onto gains due to the overbought RSI conditions.

As a result, sellers are now awaiting a downside break of $1,600 to aim for the early-month high nearing $1,594.

However, 21-day SMA and an upward sloping trend line from December 2019, around $1,577 and $1,572 respectively, will limit the bullion’s further declines.

It should be noted that the precious metal’s downside past-$1,572 will confirm a broad bearish rising wedge formation and can trigger a fresh down-leg towards the late-2019 area.

On the upside, March 2013 high near $1,617 acts as the immediate resistance ahead of the rising trendline connecting highs marked during September 20119 and January 2020, close to $1630/31.

Gold daily chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1606.76
Today Daily Change	-6.21
Today Daily Change %	-0.39%
Today daily open	1612.97

Trends
Daily SMA20	1575.88
Daily SMA50	1544.59
Daily SMA100	1512.65
Daily SMA200	1470.88

Levels
Previous Daily High	1613
Previous Daily Low	1599.56
Previous Weekly High	1584.36
Previous Weekly Low	1561.99
Previous Monthly High	1611.53
Previous Monthly Low	1517.1
Daily Fibonacci 38.2%	1607.87
Daily Fibonacci 61.8%	1604.69
Daily Pivot Point S1	1604.02
Daily Pivot Point S2	1595.07
Daily Pivot Point S3	1590.58
Daily Pivot Point R1	1617.46
Daily Pivot Point R2	1621.95
Daily Pivot Point R3	1630.9

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD holds firm above 1.1900 as US NFP looms

EUR/USD holds its upbeat momentum above 1.1900 in the European trading hours on Wednesday, helped by a broadly weaker US Dollar. Markets could turn cautious later in the day as the delayed US employment report for January will takes center stage.

GBP/USD recovers losses despite rising UK political risks, BoE rate cut bets

Pound Sterling advances against the US Dollar after registering modest losses in the previous session, trading around 1.3650 during the Asian hours on Wednesday. The pair could extend losses as the Pound Sterling faces pressure from rising political risks in the UK and growing expectations of near-term Bank of England rate cuts.

Gold sticks to gains near $5,050 as focus shifts to US NFP

Gold holds moderate gains near the $5,050 level in the European session on Wednesday, reversing a part of the previous day's modest losses amid dovish US Federal Reserve-inspired US Dollar weakness. This, in turn, is seen as a key factor acting as a tailwind for the non-yielding yellow metal ahead of the critical US NFP release.

US Nonfarm Payrolls expected to show modest job gains in January

The United States Bureau of Labor Statistics will release the delayed Nonfarm Payrolls data for January on Wednesday at 13:30 GMT. Investors expect NFP to rise by 70K following the 50K increase recorded in December.

S&P 500 at 7,000 is a valuation test, not a liquidity problem

The rebound from last week’s drawdown never quite shook the sense that it was being supported by borrowed conviction. The S&P 500 once again tested near the 7,000 level (6,986 as the high watermark) and failed, despite a macro backdrop that would normally be interpreted as supportive of risk.

BNB prolonged correction signals deeper bearish momentum

BNB (BNB), formerly known as Binance Coin, is trading below $618 on Wednesday, marking the sixth consecutive day of correction since the weekend. The bearish price action is further supported by rising short bets alongside negative funding rates in the derivatives market.