Gold: The multi-year high at $1,703.18 can be retested

The yellow metal has recovered nicely after plummeting in the last two weeks. Gold has room to retest the multi-year high at $1,703.18, in the opinion of Valeria Bednarik from FXStreet.

Key quotes

“In the weekly chart, spot gold has recovered above a bullish 20 SMA, while technical indicators have U-turned, the Momentum bouncing from its mid-line and the RSI recovering into positive ground.”

“In the daily chart, the metal has also recovered above its 20 SMA, located in the 1,590.00 area. Technical indicators have erased oversold conditions, but lost directional strength after reaching neutral readings.”

“The weekly high at 1,643.90 is the immediate resistance ahead of 1,660. Beyond this last, spot has room to re-test the multi-year high at 1,703.18.”

“The 1,606.60 level provides support ahead of the daily 20 SMA. Below this last, the bearish case will be stronger, with the 1,500 level at sight.”