The price of gold consolidates after registering a fresh record high ($2223) earlier this month, but the range bound price action in bullion may end up short lived as the former resistance zone around the December high ($2147) seems to be offering support.
Gold Price Outlook
The recent pullback in the price of gold has pulled the Relative Strength Index (RSI) back below 70, and the oscillator may show the bullish momentum abating should it continue to move away from overbought territory.
A break/close below the $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension) region may push the price of gold towards the $2076 (78.6% Fibonacci extension) to $2102 (38.2% Fibonacci extension) zone, with the next area of interest coming in around $2053 (23.6% Fibonacci extension).
However, the price of gold may track the positive slope in the 50-Day SMA ($2070) if it continues to hold above the former resistance zone around the December high ($2147), with a break above the monthly high ($2223) bringing $2238 (78.6% Fibonacci extension) on the radar.
--- Written by David Song, Strategist
Gold Price Outlook
The recent pullback in the price of gold has pulled the Relative Strength Index (RSI) back below 70, and the oscillator may show the bullish momentum abating should it continue to move away from overbought territory.
A break/close below the $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension) region may push the price of gold towards the $2076 (78.6% Fibonacci extension) to $2102 (38.2% Fibonacci extension) zone, with the next area of interest coming in around $2053 (23.6% Fibonacci extension).
However, the price of gold may track the positive slope in the 50-Day SMA ($2070) if it continues to hold above the former resistance zone around the December high ($2147), with a break above the monthly high ($2223) bringing $2238 (78.6% Fibonacci extension) on the radar.
--- Written by David Song, Strategist