Gold: Momentum might be slowing

There is a big RSI indicator divergence on the daily gold chart. This is when the price makes higher highs but the indicator makes lower highs as FXStreet’s analyst Rajan Dhall explains.

Key quotes

“A big RSI indicator divergence is usually a sign that the momentum in the move might be slowing. It doesn't mean the trend is over but there could be a short term pullback.” 

“In the very near term $1700 could be a support zone. Beyond that, $1650, $1600 and $1550. It seems all the support zones are converging at round numbers.”