Gold Taps $1,300 Level
Gold prices climbed to session high level of $1302, finally managing to reclaim $1300 mark for the first time since January 2015.
Risk-off sentiment and broad USD weakness could be the key factors that could be attributed to the precious metal's relentless rally from last week's low of $1230. The ongoing momentum seems strong enough to continue supporting further near-term up-move for the commodity.
It should, however, be noted that a bearish divergence seems to have formed on daily chart as even though prices continue to scale new highs but RSI is yet to hit higher high. The occurrence of a bearish divergence could be the first signs of weakening momentum. Hence, it is prudent to remain cautious at higher levels.
Technical levels to watch
Now that the yellow metal has reclaimed $1300 mark, it could now be aiming to test 2015 high level of $1307, beyond which test of August 2015 highs resistance near $1322 seems given.
Alternatively, reversal from an important handle and a drop below day's low support near $1290 could be the first signs of profit taking at higher levels. Any subsequent selling pressure seems to drag the metal back below $1285-84 support towards testing $1272-70 support area.