The price of gold continues to register a fresh record high ($2277) to keep the Relative Strength Index (RSI) above 70, and the overbought reading in the oscillator is likely to be accompanied by a further advance in the precious metal like the price action from last month.
Gold Price Outlook
The price of gold may attempt to test the $2286 (100% Fibonacci extension) to $2309 (100% Fibonacci extension) region as it extends the advance from the start of the week, and it remains to be seen if the precious metal will track the positive slope in the 50-Day SMA ($2094) as the bullish momentum persists.
Next area of interest comes in around $2363 (161.8% Fibonacci extension) but the price of gold may face a pullback once the RSI pushes back below 70 to indicate a textbook sell signal.
Need a breach below $2238 (78.6% Fibonacci extension) to bring $2181 (61.8% Fibonacci extension) back on the radar, with the next region of interest coming in around $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com
Gold Price Outlook
The price of gold may attempt to test the $2286 (100% Fibonacci extension) to $2309 (100% Fibonacci extension) region as it extends the advance from the start of the week, and it remains to be seen if the precious metal will track the positive slope in the 50-Day SMA ($2094) as the bullish momentum persists.
Next area of interest comes in around $2363 (161.8% Fibonacci extension) but the price of gold may face a pullback once the RSI pushes back below 70 to indicate a textbook sell signal.
Need a breach below $2238 (78.6% Fibonacci extension) to bring $2181 (61.8% Fibonacci extension) back on the radar, with the next region of interest coming in around $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com