Gold Price Analysis: XAU/USD retreats $10 from multi-year highs

  • Gold has pulled back to $1,867 from the session high of $1,877. 
  • The hourly chart shows a bearish divergence of RSI.

Gold is currently trading at $1,867, having clocked a nine-year high of $1,877 an hour ago. 

The hourly chart now shows a bearish divergence of the relative strength index (RSI). A similar pattern is observed in the 4-hour chart. Further, the 14-day RSI is reporting overbought conditions with an above-70 print. 

As such, the pullback could be extended to the ascending 10-day simple moving average (SMA), currently at $1,841. 

The overall bias would remain bullish as long as prices are holding above the higher low of $1,795 created on July 16. 

Hourly chart

Trend: Overbought

Technical levels

 

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