Gold price shows no signs of bullish exhaustion

From a technical perspective, the Relative Strength Index (RSI) on the daily chart is flashing extremely overbought conditions and warrants some caution for bullish traders. Hence, it will be prudent to wait for some near-term consolidation or a modest pullback before positioning for an extension of the recent blowout rally witnessed over the past two weeks or so. In the meantime, any corrective decline below the Asian session low, around the $2,336 area, is likely to find decent support and remain limited near the $2,300 mark. The said handle should act as a key pivotal point, which, if broken decisively, might prompt some technical selling and drag the Gold price further towards the $2,267-2,265 horizontal support.