The price of gold slips to a fresh weekly low ($2153) as it snaps a nine-day advance, and a further pullback in bullion may trigger a textbook sell-signal in the Relative Strength Index (RSI) should the oscillator fall below 70.
Gold Price Outlook
Keep in mind, the price of gold registered a fresh record high ($2195) as it cleared the December range, and the recent weakness in the precious metal may end up short-lived should the former resistance zone around $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension) offer support.
In turn, the RSI may continue to hold in overbought territory, with a break above the monthly high ($2195) raising the scope for a move towards $2237 (78.6% Fibonacci extension).
However, failure to hold above the $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension) zone may pull the RSI back from overbought territory, with a break/close below the $2076 (78.6% Fibonacci extension) to $2102 (38.2% Fibonacci extension) region opening up $2053 (23.6% Fibonacci extension).
--- Written by David Song, Strategist
Gold Price Outlook
Keep in mind, the price of gold registered a fresh record high ($2195) as it cleared the December range, and the recent weakness in the precious metal may end up short-lived should the former resistance zone around $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension) offer support.
In turn, the RSI may continue to hold in overbought territory, with a break above the monthly high ($2195) raising the scope for a move towards $2237 (78.6% Fibonacci extension).
However, failure to hold above the $2141 (50% Fibonacci extension) to $2150 (100% Fibonacci extension) zone may pull the RSI back from overbought territory, with a break/close below the $2076 (78.6% Fibonacci extension) to $2102 (38.2% Fibonacci extension) region opening up $2053 (23.6% Fibonacci extension).
--- Written by David Song, Strategist