#GoldTechnical Analysis#24K99 News On Friday (September 27), during the Asian session, spot gold suddenly plunged in the short term at the end of the session, with the price currently falling to around $2,663 per ounce, a nearly $10 drop within the day. FXStreet analyst Haresh Menghani wrote on Friday, analyzing the technical trend of gold price.

(Spot gold 5-minute chart Source: 24K99)

The analyst pointed out that goldtechnical aspectsis overbought, and the US Dollar Index rebounded to around 100.90, putting pressure on gold prices to undergo a pullback.

Earlier, spot gold surged $15.68 on Thursday, up 0.59% to $2672.23 per ounce.

Gold prices surged to $2685.58 per ounce during Thursday's trading session, setting a new historical high.

Menghani stated that from a technical perspective, on the daily chart,Relative Strength Index(RSIoverbought conditions have already appeared, preventing bulls from making new bets. Gold recently broke the short-term uptrend channel, indicating the least resistant path for gold is upwards. However, gold bulls need to wait for some recent consolidation or a moderate pullback, and then prepare for the continuation of the recent established uptrend.

At the same time, any significant declines could provide buying opportunities near the channel resistance point, which is around $2625 per ounce. This, in turn, should help limit the downside potential of gold to near $2600 per ounce.

(Spot gold daily chart Source: 24K99)

Analyst Menghani pointed out that $2600 per ounce should be a key pivot point, and if effectively broken, it will pave the way for some meaningful downward trend in the recent gold price.

At 13:43 Beijing time, spot gold was quoted at $2663.03 per ounce.