Gold: Overbought rally eyes key resistance – UOB

UOB analyst Quek Ser Leang observes that gold remains in an overall uptrend after surpassing a key declining trendline and hitting a high near $4,700. However, the market is now considered overbought, leading to a recent pullback. Support is now seen around $4,425, while resistance is noted at $4,773 and $4,889. Despite the overbought conditions, the broader trend is still positive.

The previous record high of $5,595 in February has triggered this overbought state. Over the past few days, gold has surged and hit an intraday high of $4,696, just below the $4,700 mark. With the daily slow stochastic nearing its most overbought level since February, a near-term pullback or consolidation seems likely. The minor ascending daily trendline at $4,425 offers immediate support, and a break below this level would suggest fading momentum. The next resistance level to watch is May's high of $4,773, followed by April's high of $4,889.