Gold Price Rally Persists to Keep RSI Above 70

The price of gold continues to register a fresh record high ($2365) as it extends the advance from the start of the week, with the ongoing rally in the precious metal keeping the Relative Strength Index (RSI) above 70.

Gold Price Outlook

The recent rally in the price of gold may persist as it carves a series of higher highs and lows, and the overbought reading the RSI is likely to be accompanied by a further advance in bullion like the price action from last month.

Big round figures are in focus for the price of gold as it pushes into uncharted territory but need a close above the $2363 (161.8% Fibonacci extension) to $2396 (78.6% Fibonacci extension) region to open up $2517 (161.8% Fibonacci extension).

However, failure to clear the $2363 (161.8% Fibonacci extension) to $2396 (78.6% Fibonacci extension) region may curb the bullish price series in gold, with a move below the $2286 (100% Fibonacci extension) to $2309 (100% Fibonacci extension) area bringing the $2237 (78.6% Fibonacci extension) to $2242 (61.8% Fibonacci extension) zone on the radar.

--- Written by David Song, Strategist at FOREX.com