From a technical perspective, this week's sustained breakout through the $2,008-2,010 barrier and the subsequent move-up support prospects for a further appreciating move. That said, the Relative Strength Index (RSI) on the daily chart is flashing slightly overbought conditions and warrants some caution for bullish traders. Hence, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for additional gains.
Any corrective pullback below the Asian session low, however, is likely to find decent support and attract fresh buyers near the $2,035-2,034 region. This should help limit the downside for the Gold price near the $2,020 level, which should now act as a key pivotal point. On the flip side, some follow-through buying beyond the $2,052 region, or a multi-month top touched earlier this Wednesday, will set the stage for a move towards challenging the all-time high, around the $2,079-2,080 zone set in May.
Any corrective pullback below the Asian session low, however, is likely to find decent support and attract fresh buyers near the $2,035-2,034 region. This should help limit the downside for the Gold price near the $2,020 level, which should now act as a key pivotal point. On the flip side, some follow-through buying beyond the $2,052 region, or a multi-month top touched earlier this Wednesday, will set the stage for a move towards challenging the all-time high, around the $2,079-2,080 zone set in May.
