Gold Bullish Price Series Keeps RSI in Overbought Territory
The price of gold extends the series of higher highs and lows from earlier this week to register a fresh record high ($3358).
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Gold Price Outlook: XAU/USD
The price of gold extends the series of higher highs and lows from earlier this week to register a fresh record high ($3358), and the bullish price action may persist as the Relative Strength Index (RSI) holds above 70.
Gold Bullish Price Series Keeps RSI in Overbought Territory
It seems as though the ongoing shift in US trade policy will keep the price of gold afloat as it offers an alternative to fiat-currencies, and bullion may continue to track the positive slope in the 50-Day SMA ($3004) as it still holds above the moving average.
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With that said, the price of gold may continue to trade to fresh record highs as the actions taken by the Trump administration clouds the outlook for global growth, but lack of momentum to extend the bullish price series may pull the RSI back from overbought territory.
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView
- The price of gold breaks out of the range bound price action from the start of the week to keep the Relative Strength (RSI) above 70, and bullish momentum may persist as long as the oscillator holds in overbought territory.
- A break/close above $3370 (161.8% Fibonacci extension) may draw attention to round figures like $3500, with the next area of interest coming in around $3540 (161.8% Fibonacci extension).
- At the same time, the price of gold may snap the bullish price series should it struggle to hold above $3280 (100% Fibonacci extension), with the next region of interest coming in around $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension).
Additional Market Outlooks
Euro Forecast: EUR/USD Vulnerable to RSI Sell-Signal amid ECB Rate Cut
Canadian Dollar Forecast: USD/CAD Drops as BoC Holds Interest Rate
US Dollar Forecast: USD/CHF Weakness Keeps RSI in Oversold Territory
GBP/USD Stages Six-Day Rally for First Time in 2025
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
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