Technical Analysis: Gold price falls sharply from $2,220 as oscillators turn overbought
Gold price drops significantly to $2,162 from its all-time high of $2,222. Profit-booking dragged the Gold price as momentum oscillators turned extremely overbought on the daily time frame. This doesn’t exhibit a bearish reversal as the asset could rebound after oscillators cool down. The 14-period Relative Strength Index (RSI) drops after reaching a little above 84.00. The RSI (14) is considered extremely overbought when it climbs above 80.00.
The near-term demand for the Gold price remains strong as the 20-day Exponential Moving Average (EMA) at $2,137 is sloping higher.
On the upside, the Gold price could face resistance near the 161.8% Fibonacci extension at $2,250. The Fibonacci tool is plotted from December 4 high at $2,144.48 to December 13 low at $1,973.13. On the downside, December 4 high at $2,144.48 will support the Gold price bulls
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