Gold Price Analysis: Gravestone Doji on D1 questions the bulls
- Gold prices remain positive.
- A bearish candlestick formation, overbought RSI check the buyers.
- The confluence of 21-day SMA, a three-week-old rising trend line acts as strong support.
- Buyers will look for entry beyond $1,661.
Gold prices take the bids near $1,645 during the initial hours of Asian trading on Friday. In doing so, the pair challenges the previous day’s bearish candlestick formation that raises hopes of a pullback until defied. Also challenging the bulls are overbought conditions of RSI.
That said, the buyers should look for entry only beyond $1,661 as it will defy the bearish candlestick on the daily (D1) chart.
Following that, the bullion can take aim at the recent highs near $1,690 and $1,697 numbers to the north before targeting the $1,700 round-figures.
On the downside, lows marked on Tuesday and Wednesday surrounding $1,625 can entertain short-term sellers.
Though, buyers are less likely to accept the defeat unless the quote breaks below 21-day SMA and short-term rising support line, around $1,598/97.
Gold daily chart
Trend: Pullback expected