Gold Price Continues to Set Fresh Record High

The price of gold extends the advance from the previous week to set a fresh record high ($2532), with the recent advance in bullion pushing the Relative Strength Index (RSI) towards overbought territory.

Gold Price Outlook

The price of gold may reestablish the bullish trend from earlier this year following the break above the July high ($2484) as the 50-Day SMA ($2393) starts to reflect a positive slope.

A break/close above the $2554 (61.8% Fibonacci extension) to $2565 (161.8% Fibonacci extension) region opens up $2592 (100% Fibonacci extension), and a move above 70 in the RSI is likely to be accompanied by a further advance in the price of gold like the price action from earlier this year.

Next area of interest comes in around $2629 (78.6% Fibonacci extension) but lack of momentum to break/close above the $2554 (61.8% Fibonacci extension) to $2565 (161.8% Fibonacci extension) region may curb the recent advance in the price of gold and keep the RSI out of overbought territory.

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