Gold Technical Analysis: Revisits multi-month tops, set-up favors further near-term up-move

   “¢   The precious metal built on last week’s goodish bounce from the $1300 neighbourhood and a subsequent breakthrough near two-week-old strong hurdle.

   “¢   The positive momentum extended for the third straight session on Monday and lifted the commodity to retest multi-month tops, around the $1326 region.  

Gold 4-hourly chart

   “¢   Given that the commodity remains well above its important intraday moving averages – 50, 100 & 200-hour SMA, support prospects for further intraday gains.

   “¢   However, technical indicators on hourly charts have moved on the verge of pointing to slightly overbought conditions and thus, warrant some caution.

   “¢   The set-up points to some near-term consolidation before further gains towards 61.8% Fibo. expansion level of  $1280-$1326 up-move and subsequent retracement.

Technical levels to watch