Gold: Overbought rally eyes key resistance – UOB

UOB’s Quek Ser Leang notes that Spot Gold remains in a broader uptrend after breaking above a key declining trendline and reaching an intraday high near $4,700. While upward momentum remains strong, deeply overbought conditions have triggered a pullback, with support around $4,425 and resistance at $4,773 and $4,889.

Overbought uptrend faces resistance band

"Spot gold’s broader move remains on the upside, but deeply overbought conditions could lead to a near-term pullback or consolidation."

"Last Wednesday, 19 August 2026, spot gold surged and broke above the declining trendline mentioned above. It continued to rise, and earlier today reached an intraday high of $4,696, just shy of the $4,700 level we highlighted in our previous update."

"Upward momentum remains strong, but with the daily slow stochastic near its most overbought level since February’s record, a near-term pullback or consolidation looks likely even though the broader move remains on the upside. "

"The minor ascending daily trendline, now at $4,425, is providing immediate support. A breach of the 21-day EMA at $4,425 would indicate that upward momentum has faded. On the upside, the next resistance level to monitor is May’s high of $4,773."

"The 50% retracement of the drop from the record high of $5,595 to June’s low of $3,943 is at $4,769, not far below $4,773. Above $4,773, the next key level to monitor is April’s high of $4,889."