Gold Price Outlook: XAU/USD Resilience Holds at Nine-Month High

Gold (XAU/USD) Weekly Technical Outlook: NeutralGold prices bullish above $1,930, bearish below $1,900.XAU/USD peaks at nine-month high as the RSI (relative strength index) rises into overbought territory.USD strength and slowing momentum could place pressure on the upside move.

Gold prices endure after bullish recovery drives XAU/USD to a nine-month high

Gold prices ended the week marginally higher after a slight uptick in the Dollar limited gains above $1,930. Although a break of the $1,900 psychological level assisted in driving XAU/USD to a nine-month high of $1,939 in Fridays session, technical indicators suggest that bullish momentum could be losing steam.

With prices falling back into a narrow range of support and resistance, the formation of a doji candle on the daily chart could be suggestive of indecision. While buyers aim to regain confidence above $1,930, sellers are determined to drive prices lower.

Chart prepared by Tammy Da Costa using TradingView

As the rising trendline from the October low remains intact, the 38.2% Fibonacci retracement of the 2022 move has formed an additional barrier of support around $1,903. With gold prices recovering over 19% of last years losses, the three-month rally has driven the daily RSI (relative strength index) into overbought territory.

From the perspective of the weekly chart, a longer lower wick on the current candle represents a strong retaliation from sellers. After falling to a weekly low of $1,898.6, the quick reaction from and a move above $1,900 helped limit further declines.

Chart prepared by Tammy Da Costa using TradingView

While Fibonacci levels of the 2018 – 2020 move provides longer-term support and resistance between $1,871 (the 23.6%) and $1,956 (14.4%), a clear break of $1,939 could assist in driving higher prices.