Gold continues its bullish run to hit its highest level since September 2017, maintaining its strong upside momentum since breaching the 1320 level. The commodity has been in an uptrend since reversing losses in mid-December 2017.
Looking at the 4-hour chart, the market is looking a little overstretched as indicated by the stochastic and RSI both being in overbought territories. Despite this, gold is expected to hold its bullish bias but will likely pause the rally in the near-term.
Support is expected at 1340, a level which the market seems to be holding after pulling back from the 1344.71 high earlier today. A deeper correction would see prices target an important level at 1320, which is an area that saw significant congestion recently. Below this, 1310 is also seen as minor support before the focus turns to the key psychological level at 1300. A move lower would likely increase downside pressure and shift the bias to a more bearish one.
For now, the bias remains bullish despite the overbought conditions on the 4-hour chart, with scope to rise to the 1357.47 peak of September 8. For the time being, there are no technical signs indicating a trend reversal.
