Gold Record High Price Pushes RSI Into Overbought Zone
The price of gold rallies to a fresh record high ($2844), with the ongoing rise in bullion pushing the Relative Strength Index (RSI) into overbought territory.
Written by
David Song
Strategist
Gold Price Outlook: XAU/USD
The price of gold rallies to a fresh record high ($2844), with the ongoing rise in bullion pushing the Relative Strength Index (RSI) into overbought territory.
Gold Record High Price Pushes RSI Into Overbought Zone
The move above 70 in the RSI is likely to be accompanied by a further advance in gold like the price action from last year, and the upcoming changes to US trade policy may keep the precious metal afloat as it clouds the outlook for global growth.
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In response, monetary authorities may come under pressure to insulate their economy even though President Donald Trump delays tariffs for Mexico and Canada, and the risk of a policy error by major central banks may lead to higher gold prices as it offers an alternative to fiat currencies.
With that said, the price of gold may extend the advance from the start of the week as it initiates a series of higher highs and lows, but the RSI may show the bullish momentum abating should it struggle to hold in overbought territory.
XAU/USD Price Chart – Daily
Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView
- The price of gold stages a four-day rally to push the Relative Strength Index (RSI) above 70 for the first time since October, with a break/close above $2850 (61.8% Fibonacci extension) opening up $2940 (78.6% Fibonacci extension).
- Next area of interest comes in around $3000 (161.8% Fibonacci extension), but lack of momentum to a break/close above $2850 (61.8% Fibonacci extension) may pull the RSI back from overbought territory.
- Failure to hold above $2790 (50% Fibonacci extension) may push the price of gold back towards $2730 (100% Fibonacci extension), with the next area of interest coming in around 2630 (78.6% Fibonacci extension) to $2660 (23.6% Fibonacci extension).
Additional Market Outlooks
US Dollar Forecast: AUD/USD Vulnerable amid Threat of Trade War
USD/CAD Clears 2020 High as Trump Tariff Looms
EUR/USD Pulls Back Ahead of December High
GBP/USD Holds Below 50-Day SMA Ahead of BoE Rate Decision
--- Written by David Song, Senior Strategist
Follow on X at @DavidJSong
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