Technical analysis: Gold price might consolidate or witness a modest pullback amid an overbought RSI on the daily chart
From a technical perspective, the Relative Strength Index (RSI) on the daily chart is already flashing overstretched 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 any further near-term appreciating move for the Gold price.
That said, any corrective slide is likely to find decent support near the $2,100 round figure. Any further decline might still be seen as a buying opportunity and remain limited near the $2,064-2,062 strong horizontal resistance breakpoint. The latter should act as a key pivotal point, which if broken decisively will suggest that the XAU/USD has topped out and shift the near-term bias in favour of bearish traders.
On the flip side, the $2,142-2,144 area, or the all-time peak retested on Tuesday, could offer some resistance and cap the upside for the Gold price. Some follow-through buying will push the yellow metal to uncharted territory and pave the way for a further near-term appreciating move, possibly towards the $2,200 psychological mark
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