Gold Price Analysis: XAU/USD to defy the January 8 high of $1917 ignoring overbought conditions

Gold price is building on Tuesday’s break higher, sitting at fresh four-month tops of $1908. Is there room for additional upside? Uptick in Treasury yields amid overbought conditions could limit the advance, FXStreet’s Dhwani Mehta briefs.

Fedspeak draws attention amid a data-light US calendar

“The upbeat market mood undermines the sentiment around the greenback, exerting additional upside pressure on gold. Meanwhile, gold traders ignore a minor uptick in the Treasury yields, as they cheer a clear break above the key $1900 threshold.”

“XAU/USD will continue to track the dynamics in yields and the dollar amid a quiet US docket. Fedspeak will be closely followed.”

“Despite the overbought Relative Strength Index (RSI) on the daily chart, gold buyers defy the bearish odds and remain on track to test the January 8 high of $1917. However, the further upside appears elusive, as gold bulls could take a breather before resuming the uptrend towards $2000.”

“Any corrective pullbacks could meet initial demand at $1890, the static resistance now support. Further south, strong support near the $1872/70 region could guard the downside.”