Gold Surging - Will the RSI Overbought Matter?

📈 Gold Extends Gains in Strong Uptrend

Gold (XAU/USD) is trading at $2,938, continuing its rally within a well-defined ascending channel (orange lines).
Price remains above both the 50-day EMA ($2,776) and 200-day EMA ($2,576), reinforcing bullish momentum.

🔍 Key Technical Levels:

Resistance:
$3,000 → Psychological level, upper bound of the channel.
Support:
$2,900 → Lower channel trendline.
$2,850 → Stronger support if the uptrend weakens.

📊 Momentum Check:

RSI at 71.56 → Overbought territory, a pullback or consolidation is possible.
Price hugging the upper trendline, suggesting a short-term correction could be healthy.

🚀 What’s Next?

Bulls want to see $2,900 hold as support to sustain the trend.
A break below the channel could trigger profit-taking toward $2,850 or even the 50-day EMA ($2,776).
Gold’s trend remains bullish, but overbought conditions warn of potential volatility.

-MW