Gold hit its highest in over a week, reaching 1357.26 earlier today, not far from the two-year high of 1358.23 it touched on June 24. The upside momentum in place since then has started to strengthen again after weakening slightly at around the middle of last week.
RSI continues to rise but the possibility of a near-term correction has increased as it approaches overbought territory at 70. There’s already been some pull back today with prices falling back towards the upper Bollinger band, after briefly spiking outside it and finding resistance at the June 24 peak. Having already broken above the 1350 level, the next resistance to watch is the April 2014 high of 1392.07.
Should the positive momentum fade, support is likely to come from around the 1310, 1300 and 1290 levels, which have previously acted as resistance and support levels. A drop below the central Bollinger band would put prices within reach of the 50-day moving average and weaken the current bullish outlook.
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