The price of gold approaches the April high ($2432) after breaking out of the descending channel carried over from the previous month.
Gold Price Outlook
The price of gold retraces the decline from earlier this to register a fresh monthly high ($2390), with the recent advance in bullion pushing the Relative Strength Index (RSI) towards overbought territory.
A move above 70 in the RSI is likely to be accompanied by a further rise in the price of gold like the development from earlier this year, with a breach above the $2363 (161.8% Fibonacci extension) to $2396 (78.6% Fibonacci extension) region raising the scope for a test of the April high ($2432).
Next area of interest comes in around $2517 (161.8% Fibonacci extension), but failure to test of the April high ($2432) may keep the RSI out of overbought territory, and the price of gold may face range bound conditions as long as it holds above the $2286 (100% Fibonacci extension) to $2309 (100% Fibonacci extension).
Gold Price Outlook
The price of gold retraces the decline from earlier this to register a fresh monthly high ($2390), with the recent advance in bullion pushing the Relative Strength Index (RSI) towards overbought territory.
A move above 70 in the RSI is likely to be accompanied by a further rise in the price of gold like the development from earlier this year, with a breach above the $2363 (161.8% Fibonacci extension) to $2396 (78.6% Fibonacci extension) region raising the scope for a test of the April high ($2432).
Next area of interest comes in around $2517 (161.8% Fibonacci extension), but failure to test of the April high ($2432) may keep the RSI out of overbought territory, and the price of gold may face range bound conditions as long as it holds above the $2286 (100% Fibonacci extension) to $2309 (100% Fibonacci extension).
Comment:
--- Written by David Song, Strategist at FOREX.com