- Gold moves with weak momentum
- Remains near 2,950
- RSI and MACD look overbought
Gold has been fighting with 2,945-2,956 restrictive region, which encapsulates the 161.8% Fibonacci extension level of the down leg from 2,790 to 2,535, over the last few sessions. The price is weakening its positive momentum as the RSI is pointing down in the overbought region and the MACD fell below its trigger line.
If the commodity successfully extends its bullish movement above the record peak of 2,956 it may send the market to the 3,000 round level. Above this, the 261.8% Fibonacci extension at 3,200 would be another tough obstacle for traders.
In case of a bearish correction, the price could find first support at the 2,900 handle and the short-term uptrend line ahead of the 20-day simple moving average (SMA) at 2,883 and the 2,860 barrier. Below that, the 2,790 mark may prove to be a tough obstacle for the bears.
In brief, the precious metal has been in a strong upside tendency; however, there are some signs for a downside retracement in the near future.