Gold - it's now approaching its all-time high once again

Taking a look at Gold as it is now approaching its all-time highs once again. Currently, the commodity is trading at around $2,124 an ounce. Since last Friday, it has risen more than 4% and the momentum seems to remain in place. However, the resistance of $2,146 will be a tough level to break. A break and close above would be a bullish indication, allowing the bulls to eye up the next psychological level of $2,200. However, caution should remain amongst traders as the market may undergo a false breakout, especially after the data releases during this week. A rejection near the resistance may then see a pullback in order to form a new support level. The support now sits at $2,110 then at $2,079. A break below $2,079 would increase the selling pressure with a possibility of a decline towards $2,040-$2,050. The bias for the time being remains bullish. Looking at the technical indicators, they enhance the bullish bias. The MACD is largely positive and so is the RSI as it reads 81. Although, it is important to note that the RSI is now heavily overbought compared to the last few months. If we look at the past when the RSI was at similar levels, for example beginning of December and the end of October, we experienced a short-term sell-off. Hence, this cannot be ruled out for the coming weeks.