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.

Join David Song for the Weekly Fundamental Market Outlook webinar.

David provides a market overview and takes questions in real-time. Register Here

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

Australian Dollar Forecast: AUD/USD Coils Ahead of RBA Rate Decision

Canadian Dollar Forecast: USD/CAD Continues to Coil with More Trump Tariffs on Tap

US Dollar Forecast: Bearish EUR/USD Price Series Persists

USD/JPY Pulls Back Ahead of Monthly High with US PCE in Focus

--- Written by David Song, Senior Strategist

Follow on X at @DavidJSong

StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Please ensure you fully understand the risks involved by reading our full risk warning.

FOREX.com is a trading name of StoneX Europe Limited, and FOREX.com/ie is a domain operated by StoneX Europe Ltd, a member of StoneX Group Inc. StoneX Europe Ltd, is a Cyprus Investment Firm (CIF) company registered to the Department of Registrar of Companies and Official Receiver with a Registration Number HE409708, and authorized and regulated by the Cyprus Securities & Exchange Commission (CySEC) under license number 400/21. StoneX Europe is a Member of the Investor Compensation Fund (ICF) and has its registered address at Nikokreontos 2, 5th Floor, 1066 Nicosia, Cyprus.

FOREX.com is a trademark of StoneX Europe Ltd, a member of StoneX Group Inc.

This website uses cookies to provide you with the very best experience and to know you better. By visiting our website with your browser set to allow cookies, you consent to our use of cookies as described in our Privacy Policy.

Through passporting, StoneX Europe is allowed to provide its services and products on a cross-border basis to the following European Economic Area ("EEA") states: Austria, Bulgaria, Croatia, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden.

StoneX Europe Ltd products, services and information are not intended for residents other than the ones stated above.

StoneX Europe Ltd may make third party material available on this website which may contain information included but not limited to the conditions of financial markets. The material is for information purposes only and does not contain, and should not be construed as containing, investment advice and/or investment recommendation and/or an investment research and/or an offer of or solicitation for any transactions in financial instruments; any decision to enter into a specific transaction shall be made by the client following an assessment by him/her of their situation. StoneX Europe Ltd makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. We are not under any obligation to update any such material. Any opinion made may be personal to the author and may not reflect the opinion of StoneX Europe Ltd.