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.
