- XAU/USD pair is posting strong gains on Monday.
- Next key hurdle for gold is located at $1,805.
- RSI on 4-hour chart reaffirms near-term bullish outlook.
After spending the first half of the day in a relatively tight range a little above $1,780, the XAU/USD pair gained traction and rose to a daily high of $1,802. As of writing, the pair was up 0.75% on the day at $1,797.
Gold technical outlook
On the 4-hour chart, the Relative Strength Index (RSI) indicator is edging higher toward 60, suggesting that gold has more room on the upside before becoming technically overbought.
The initial resistance is located at $1,805, where the Fibonacci 61.8% retracement of last week’s decline is located. The 50-SMA is also reinforcing this area ahead of $1,817 (100-SMA/static level) and $1,830 (February 12 high).
On the downside, $1,790 (Fibonacci 38.2% retracement) could be seen as the first support before $1,780 (Fibonacci 23.6% retracement) and $1,765 (static level).
Gold 4-hour chart
Additional levels to watch for
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