Technical analysis: Gold dives as RSI nearly exits overbought levels
Gold’s daily chart depicts the yellow metal as upwardly biased despite retreating toward the $2,370 region. The formation of a Doji on Tuesday suggests that buyers lack the momentum to extend the precious metal's gains, opening the door for a pullback.
In addition, the Relative Strength Index (RSI has fallen below the 80 level and hasn’t looked back, as it is nearly crossing below the 70 level, suggesting that buying pressure is fading.
That said, XAU/USD is headed for a correction. The first support would be the $2,350 mark, followed by the April 15 daily low of $2,324. Once surpassed, Gold might test $2,300.
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