3 minsGOLD (XAU/USD):
GOLD has been a fascinating asset to watch and trade in recent weeks. After breaking into new price territory, it has continued to climb, reaching new all-time highs. Given the current macroeconomic landscape and rising tensions in the Middle East, risk assets like Gold, often viewed as “safe havens,” tend to trade higher.
When price action enters new discovery areas, it can be challenging to predict where it might move next. This is where indicators like the RSI become useful, as they can help identify potential overbought or oversold conditions. Looking closely at the RSI applied to Gold’s recent price action, we briefly crossed above the key 70% level, indicating a temporary “overbought” state. Shortly after, a minor price correction to the downside followed.
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