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Gold holds bullish bias near mid-May highs as RSI flags overbought
XAU/USD is trading around $4,647, supported by fading expectations of an imminent Fed hike and lower US Treasury yields, while the RSI at 72.0 points to stretched upside.
Gold prices stayed in a bullish near-term posture on Monday, holding close to the highest levels seen since mid-May, according to FXStreet's market analysis of XAU/USD.
The publication linked support to easing expectations for an imminent Federal Reserve interest rate hike and lower US Treasury bond yields, factors that tend to improve the appeal of non-yielding assets like gold.
FXStreet also cited geopolitical tensions involving Iran that have sustained safe-haven demand, though it said those tensions simultaneously lift the US dollar, which can cap gold's upside.
On FXStreet's technical view, XAU/USD was around $4,647.02 on the daily chart, above the 100-day and 200-day simple moving averages near $4,379.7 and $4,516.9, while an RSI near 72.0 signaled overbought conditions and higher odds of a corrective pause. It highlighted resistance areas around $4,773.0 and $4,890.0, with near-term support near the 200-day SMA and deeper levels around the $4,389.6 trendline area and $4,003.3 horizontal floor.
Latest closeGold $4,157.80 ▲0.4%