Gold Price Analysis: Bulls remains in control near multi-year tops, around $1824 area

• Gold gained traction for the third straight session on Tuesday and refreshed multi-year tops.
• Oscillators on hourly/daily charts have moved on the verge of breaking into the overbought zone.
• The set-up supports prospects for further gains but warrants some caution for aggressive bulls.

Gold prolonged its recent bullish trajectory and shot to fresh multi-year tops, around the $1824-25 region during the early European session on Tuesday.

Given that the European Union leaders agreed on an unprecedented stimulus package worth €750 billion, prospects of more stimulus package from the US continued driving flows towards the non-yielding yellow metal.

This comes on the back of the overnight break through the $1812-14 resistance zone, which was seen as a fresh trigger for bulls and prompted some technical buying through the first half of the trading action on Tuesday.

Meanwhile, technical indicators on hourly/daily charts have already moved, or are on the verge of breaking into the overbought territory. This, in turn, warrant some caution before positioning for any further gains.

The latest optimism over a potential COVID-19 vaccine remained support of the upbeat market mood. This might undermine the precious metal's safe-haven status, rather prompt traders to take some profits off the table.

That said, any meaningful pullback might still be seen as an opportunity to initiate fresh bullish positions. The $1814-12 resistance breakpoint should act as immediate strong support ahead of the $1800 mark.

Gold 4-hourly chart

Technical levels to watch