Gold Record High Price Pushes RSI Towards Overbought Zone
The price of gold climbs to a fresh record high ($2985) as it breaks out of the February range.
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Gold Price Outlook: XAU/USD
The price of gold climbs to a fresh record high ($2985) as it breaks out of the February range, with the recent advance in bullion pushing the Relative strength Index (RSI) towards overbought territory.
Gold Record High Price Pushes RSI Towards Overbought Zone
The rally in the price of gold may persist as it carves a series of higher highs and lows, and the precious metal may track the positive slope in the 50-Day SMA ($2824) as it continues to hold above the moving average.
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In turn, a further advance in bullion may push the RSI into overbought territory, with a move above 70 in the oscillator likely to be accompanied by higher gold prices like the price action from earlier this month.
With that said, the price of gold may continue to register fresh record highs as it extends the rally from earlier this week, but the RSI may show the bullish momentum abating if it struggles to push into overbought territory.
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView
- The price of gold pushes above the February high ($2956) as it stages a three-day rally, with a break/close above $3000 (161.8% Fibonacci extension) opening up $3050 (100% Fibonacci extension).
- Next area of interest comes in around $3160 (161.8% Fibonacci extension), but lack of momentum to break/close above $3000 (161.8% Fibonacci extension) may lead to a pullback in the price of gold.
- Need a move below $2940 (78.6% Fibonacci extension) for bullion to threaten the bullish price series, with a move below the weekly low ($2880) raising the scope for a test of the monthly low ($2858).
Additional Market Outlooks
British Pound Forecast: GBP/USD Pulls Back Ahead of November High
US Dollar Forecast: USD/JPY Rebound Keeps RSI Above Oversold Zone
Euro Forecast: EUR/USD on Cusp of Testing November High
Canadian Dollar Forecast: USD/CAD Faces BoC Rate Cut as Trump Tariffs Loom
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
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