Gold Price Analysis: XAU/USD backs off from record highs hit in early Asia

  • Gold has pulled back from the record high of $2,075. 
  • The 4-hour chart shows a bearish divergence of key indicators.

Gold is currently trading near $2,067 per ounce, having reached a record high of $2,075 during the early Asian trading hours. 

The 4-hour chart shows a bearish divergence of both the relative strength index and the stochastic indicator. Daily chart indicators, too, are reporting overbought conditions. 

As such, a further decline toward $2,060 may be seen. The overall trend, however, would remain bullish while prices are held above the ascending 10-day simple moving average, currently at $2,000.

Moreover, with central banks and governments pumping unprecedented amounts of liquidity into the global economy, scarce assets like gold are likely to continue rallying for the rest of the year. 

4-hour chart

Trend: intraday bearish

Technical levels

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