Gold Price Analysis: XAU/USD pulls back from two-month highs, but bias remains bullish

• Gold has backed off from multi-month highs seen early today. 
• The bullish breakout confirmed on Monday remains valid.

Gold is currently trading near $1,938 per ounce, representing a 0.20% decline on the day. Prices clocked a high of $1,946 early today. That was the highest level since Nov. 9. 

The metal has pulled back from two-month highs in a move typical to bull breather seen following a major breakout. 

Prices jumped over 2% on Monday, forming a bullish marubozu candle and confirming an upside break of the falling channel represented by trendlines connecting  Aug. 7 and Nov. 9 highs and Sept. 24 and Nov. 30 lows. 

Backed by an above-50 or bullish reading on the 14-day Relative Strength Index, the breakout has opened the doors for the Nov. 9 high of $1,965. The bias would remain bullish as long as prices remain above Monday's low of $1,898. 

Daily chart

Trend: Bullish

Technical levels