Gold Price Analysis: Better bid after biggest weekly gain since August 2019

• Gold rallied by over 3.7 percent last week to print its best weekly performance since August. 
• The bias remains bullish despite overbought readings on key indicators.

Gold is on the offensive, having logged its biggest weekly gain in six months last week. 

The yellow metal is currently trading at $1,663 per Oz, representing over 1% gains on the day, having hit a high of $1,681 in early Asia. That was the highest level since February 2013. 

Prices rallied by over 3.7% last week. Gain bigger than that were last seen in the second week of August. 

Overbought?

The daily relative strength index (RSI) is reporting overbought conditions with an above-70 print. The weekly RSI is also echoing similar sentiments. 

The price chart, however, is showing no signs of buyer exhaustion. So, the path of least resistance remains to the higher side. 

The pullback from the session high of $1,681 looks to have run out of steam near $1,658. The dip could attract more bids as the risk-off is in full swing with the futures on the S&P 500 and the Asian equity indices reporting notable losses on the emergence of coronavirus infections in new countries including South Korea, Italy, and Iran. 

Daily chart

Trend: Bullish

Technical levels