- Gold prices rise for the third day to attack two-week top.
- Sustained break of one-month-old resistance line, now support, favors the bulls.
- Overbought RSI, short-term rising trend line challenges the buyers.
Gold prices print 1.09% gains, trades around $1,989.40, as traders in Europe gather for Tuesday’s bell. In doing so, the yellow metal portrays a three-day winning streak to probe the highest levels last seen on August 19.
However, overbought RSI conditions on the four-hour (4H) chart joins the upward sloping trend line from August 21 to challenge the bullion’s further upside around $1,990.
Hence, the quote’s pullback towards the weekly low near $1,954 can’t be ruled out but the further weakness will depend upon how well sellers dominate below a falling trend line from August 06, at $1,940.
Alternatively, the commodity’s bullish momentum beyond $1,990 will easily pierce the $2,000 threshold while targeting the August 18 peak near $2,015/16.
In a case where the upward trajectory gains acceptance past-$2,016, the record high near $2,075 and the $2,100 round-figures can entertain the buyers.
Gold four-hour chart
Trend: Pullback expected
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