Gold's rally reached a 1-year high on Thursday, benefited by the market turmoil which sent investors towards safe-haven assets. Spot reached a daily high of $1,263.36 an ounce, adding nearly 5% on the day, before easing somewhat, now trading above 1,250.00. Plummeting bond yields worldwide also supported the commodity that advanced almost 20% ever since the year started. Gold technical perspective “The rally is way overstretched, and the daily chart shows that the RSI indicator heads north around 85, while the Momentum indicator also heads north in extreme overbought levels, maintaining the bullish trend firm in place. Nevertheless, it seems to be a bit too late to join the buying party as there are high chances of some profit taking ahead of the weekend”, said Valeria Bednarik, chief analyst at FXStreet. “In the 4 hours chart, the technical indicators are losing upward strength, but remain at extreme levels, while the 20 SMA heads sharply higher around 1,201.00, providing a strong support in the case of a downward movement”. Support levels: 1,248.45 1,229.57 1,220.90. Resistance levels: 1,263.40 1,271.25 1,283.10. For more information, read our latest forex news.