Gold Price Forecast: XAU/USD Halts Eight-Week Rally

Gold Price Outlook: XAU/USD

The price of gold halts an eight-week rally as it continues to pull back from a record high ($2956).

Gold Price Forecast: XAU/USD Halts Eight-Week Rally

The price of gold starts to carve a series of lower highs and lows as it slips to a fresh weekly low ($2833), with the recent weakness in bullion pushing the Relative Strength Index (RSI) to its lowest level since December.

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In turn, the price of gold may fall towards the 50-Day SMA ($2770) should it continue to give back the advance from the February low ($2772), but the decline may turn out to be temporary if bullion respond to the positive slope in the moving average.

With that said, the price of gold may reestablish the upward trend from earlier this year as it continues to offer an alternative to fiat currencies, but the RSI may approach oversold territory should the bearish price series persist.

XAU/USD Price Chart – Daily

Chart Prepared by David Song, Senior Strategist; XAU/USD on TradingView

• The price of gold may face a further decline as it carves a series of lower highs and lows, and a break/close below $2790 (50% Fibonacci extension) may lead to a test of the February low ($2772).
• Failure to hold above the 50-Day SMA ($2770) may push the price of gold towards $2730 (38.2% Fibonacci extension), but the recent weakness in bullion may turn out to be temporary should it track the positive slope in the moving average.
• Need a move back above $2850 (61.8% Fibonacci extension) to bring $2940 (78.6% Fibonacci extension) on the radar, with a breach above the February high ($2956) opening up $3000 (161.8% Fibonacci extension).

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--- Written by David Song, Senior Strategist

Follow on X at @DavidJSong