XAU / USD Extends Daily Rally, Short-Term Resistance Aligns At $ 1,835

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  • Gold posted strong gains on the first day of the week.
  • The next technical resistance could be seen at $ 1,835.
  • The rising trend line on the hourly chart acts as dynamic support.

The pair XAU / USD It started the new week with a small gap to the upside but remained relatively quiet during Asian trading hours. However, the pair regained its traction before the US session and hit a daily high of $ 1,830.80. At time of writing, XAU / USD was up 0.9% on the day at $ 1,830.40.

Gold technical outlook

On the one-hour chart, the price of gold appears to be following an ascending trend line from the sharp drop recorded last Thursday. However, the Relative Strength Index (RSI) on the same chart has reached the overbought area at 70 for the first time since Jan 29, suggesting that there could be a short-term technical correction before the next leg.

However, unless the trend line, currently located around $ 1,815, is violated, buyers are likely to remain in control of the price action. Ahead of that level, the 100 SMA is interim support at $ 1,820.

On the upside, there are two horizontal levels that could act as resistance at $ 1,835, which is also reinforced by the 200 SMA, and $ 1,842.

One hour gold chart

Technical levels

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