Gold Price Rallies to Fresh Record High to Push RSI Back Above 70

Gold Price Outlook: XAU/USD

The price of gold rallies to a fresh record high ($2955) as it carves a series of higher highs and lows, with the rise in bullion pushing the Relative Strength Index (RSI) back into overbought territory.

Gold Price Rallies to Fresh Record High to Push RSI Back Above 70

The recent pullback in gold was short lived as it extends the advance from the start of the week, and the move above 70 in the RSI is likely to be accompanied by a further rise in the precious metal like the price action from earlier this month.

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In turn, the price of gold may reflect a bullish trend as the 50-Day SMA ($2740) establishes a positive slope, and bullion may continue to benefit from the change in policy by major central banks as it offers an alternative to fiat currencies.

With that said, the rally in the price of gold may persist as it carves a series of higher highs and lows, but the RSI may show the bullish momentum abating should it struggle to hold above 70.

XAU/USD Price Chart – Daily

Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView

The price of gold extends the advance from the start of the week to register a fresh record high ($2955), with a close above $2940 (78.6% Fibonacci extension) to bring $3000 (161.8% Fibonacci extension) on the radar.
Next area of interest comes in around $3050 (100% Fibonacci extension), but lack of momentum to close above $2940 (78.6% Fibonacci extension) may curb the recent series of higher highs and lows in the price of gold.
Failure to defend the weekly low ($2879) may push the price of gold back towards $2850 (61.8% Fibonacci extension), with a breach below $2790 (50% Fibonacci extension) raising the scope for a test of the monthly low ($2772).

Additional Market Outlooks

GBP/USD Eyes December High amid Ascending Channel Formation

AUD/USD Clears January High to Trade in Ascending Channel

US Dollar Forecast: EUR/USD Rally Stalls Ahead of January High

USD/CAD Forecast: Canadian Dollar Unfazed by CPI as Trump Tariffs Loom

--- Written by David Song, Senior Strategist

Follow on X at @DavidJSong

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