#Gold Technical Analysis# 24K99 News On Monday (October 21), during the early European session, spot gold fell back from the record high it touched earlier, and is currently trading near $2725 per ounce. FXStreet senior analyst Dhwani Mehta wrote an article on Monday analyzing the technical trend of gold prices.

(Spot gold 5 minutes chart Source: 24K99)

During Monday's Asian session, the price of gold once surged to $2732.84 per ounce, hitting a new historical high.

Mehta wrote that in early Monday trading, gold was consolidating near the record high. Gold buyers are waiting for the statements of the Federal Reserve policymakers to gain new trading momentum.

From a technical perspective, Mehta pointed out that the Relative Strength Index (RSI) on the daily gold chart remains in the overbought zone, so investors need to be cautious about a price pullback.

(Screenshot source: FXStreet)

Mehta stated that the ongoing tension between Israel and Iran is supporting gold prices.

According to Lebanese media reports, after Israel announced that it was targeting the al-Qard al-Hassan financial institution of Hezbollah, it launched a new round of airstrikes in the southern part of Beirut. In addition, the US government has launched an investigation into unauthorized leaks of classified documents that detail Israel's military preparations for a possible attack on Iran. During times of geopolitical turmoil, investors are more inclined to flock to traditional safe-haven asset gold.

Mehta said that since the United States did not have top-tier economic data on Monday, the market's focus will still be on risk sentiment and speeches by several Fed policymakers to seek new directional momentum for gold prices.

Latest technical analysis for gold?

Mehta wrote that on Monday, gold prices rose again, challenging the level of $2730 per ounce. The 14-day Relative Strength Index (RSI) trended flat, while remaining above the overbought area of 70. This indicates that buyers are facing exhaustion, and a retracement may be imminent.

Mehta pointed out that the recent support level for gold is expected to be around last Friday's low of $2692 per ounce. If this level is breached, the possibility of gold falling towards the support level of $2670 per ounce cannot be ruled out.

If gold continues to fall below the above levels, sellers will challenge the key 21-day Simple Moving Average (SMA) support level at $2653 per ounce.

(Spot gold daily chart source: FXStreet)

On the other hand, Mehta added that if gold buyers effectively break through $2730 per ounce, then testing the psychological barrier of $2750 per ounce will be inevitable.

At 15:36 Beijing time, spot gold was trading at $2725.60 per ounce.