(Kitco News) – With markets closed on Friday for the Easter long weekend, investors took some profits off the table on Thursday after gold reached a new record high above $3,350 an ounce. And while gold continues to look overbought, some analysts have said that the market remains in a solid uptrend.
Despite the selling pressure, gold has held solid support around $3,300. Spot gold last traded at $3,316.90 an ounce, up nearly 2.5% for the week. David Morrison, Senior Market Analyst at Trade Nation, described gold’s price action this week, including Wednesday’s $100 rally, as a blowoff top.
“Gold has rallied 13%, or $360, in the space of a week. Therefore, investors shouldn’t be surprised that prices are pulling back now. Gold also looks very overbought, with its daily MACD hitting levels last seen in April 2011, just before the last peak in prices. This doesn’t mean it can’t rally further from here, but buyers should be cautious at current levels,” he said.
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