The price of gold gives back the advance from the start of the week to keep the Relative Strength Index (RSI) out of overbought territory.
Gold Price Outlook
The price of gold carves a series of lower highs and lows after registering a fresh yearly high ($2450), and lack of momentum to hold above the $2363 (161.8% Fibonacci extension) to $2396 (78.6% Fibonacci extension) region may push bullion back towards $2286 (100% Fibonacci extension).
Failure to defend the monthly low ($2277) opens up $2242 (61.8% Fibonacci extension), but the price of gold may track the positive slope in the 50-Day SMA ($2305) should it continue to hold above the moving average.
In turn, the recent weakness in the price of gold may end up short lived but need a close above $2448 (38.2% Fibonacci extension) to open up $2501 (50% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com
Gold Price Outlook
The price of gold carves a series of lower highs and lows after registering a fresh yearly high ($2450), and lack of momentum to hold above the $2363 (161.8% Fibonacci extension) to $2396 (78.6% Fibonacci extension) region may push bullion back towards $2286 (100% Fibonacci extension).
Failure to defend the monthly low ($2277) opens up $2242 (61.8% Fibonacci extension), but the price of gold may track the positive slope in the 50-Day SMA ($2305) should it continue to hold above the moving average.
In turn, the recent weakness in the price of gold may end up short lived but need a close above $2448 (38.2% Fibonacci extension) to open up $2501 (50% Fibonacci extension).
--- Written by David Song, Strategist at FOREX.com