Gold Price Rally Pushes RSI Back into Overbought Territory

Gold Price Outlook: XAU/USD

The price of gold stages a four-week rally as it climbs to a fresh record high ($3087), with the recent advance in bullion pushing the Relative Strength index (RSI) back into overbought territory.

Gold Price Rally Pushes RSI Back into Overbought Territory

The rally in the price of gold may carry into April as it breaks out of the range bound price action from earlier this week, and the move above 70 in the RSI is likely to be accompanied by a further rise in bullion like the price action from earlier this year.

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With that said, the price of gold may continue to trade to fresh record highs as it carves a series of higher highs and lows, but the RSI may show the bullish momentum abating if it struggles 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 carves a series of higher highs and lows as it breaks out of the range bound price action from earlier this week, and the precious metal may continue to register fresh record highs as Relative Strength Index (RSI) pushes above 70 for the fourth time this year.
• A break/close above $3120 (61.8% Fibonacci extension) opens up the $3160 (161.8% Fibonacci extension) to $3190 (78.6% Fibonacci extension) region, but the precious metal may snap the bullish price series if it struggles to hold above the $3050 (100% Fibonacci extension) to $3070 (50% Fibonacci extension) zone.
• Failure to defend the $3000 (161.8% Fibonacci extension) $3020 (38.2% Fibonacci extension) region may push the price of gold back towards the $2940 (78.6% Fibonacci extension) to $2960 (23.6% Fibonacci extension) zone, with the next area of interest coming in around the monthly low ($2858).

Additional Market Outlooks

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--- Written by David Song, Senior Strategist

Follow on X at @DavidJSong