Gold Price Rally Pushes RSI Towards Overbought Zone

The price of gold trades to a fresh monthly high ($2044) as it rallies for the fourth consecutive day.

Gold Price Outlook

The price of gold may attempt to test the yearly high ($2082) as it carves a series of higher highs and lows, and a move above 70 in the Relative Strength Index (RSI) is likely to be accompanied by a further advance in bullion like the price action from earlier this year.

A break/close above $2076 (78.6% Fibonacci extension) raises the scope for a test of the yearly high ($2082), with the next area of interest coming in around $2150 (100% Fibonacci extension).

However, failure to test $2076 (78.6% Fibonacci extension) may keep the RSI out of overbought territory, with a move below $2018 (61.8% Fibonacci extension) opening up the$1973 (78.6% Fibonacci retracement) to $1977 (50% Fibonacci extension) region.