Gold Technical Analysis: Nears YTD high of $1,326, weekly RSI highest since September 2011

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Gold is fast closing on a year-to-date high of $1,326 reached on Jan. 31 and may break higher toward $1,354 (100-month moving average) if trade optimism continues to hurt the US dollar. 

The 14-week relative strength index (RSI), however, has jumped to 71.06 – the highest level since 2011. That is also the first above-70 (overbought) reading since July 2016. 

An overbought RSI indicates a minor pullback could be in the offing before a convincing break above the year-to-date high of $1,326 unfolds. 

4-hour chart

Weekly chart

Trend: bullish

 

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