FX.co ★ XAU/USD, GOLD

GOLD For next week on gold, I’m leaning toward further upside. The price has broken out of a prolonged sideways range and moved sharply higher, but the RSI is already above 80, which indicates an overbought market, so a correction is quite likely. The main resistance is now at 4382; if price manages to consolidate above this level, it opens the way for a move up to 4540. However, after such a strong rally, I wouldn’t recommend buying at the top. I’m more interested in waiting for a pullback roughly to 4303, or ideally to the 4215–4175 area, and then watching how buyers react. The 4075 level is key for me: if price drops below it, the upside potential will weaken. Additional support for gold comes from expectations of a more dovish Fed policy and ongoing tensions around Iran. Overall, I’m more inclined to buy, but either after a significant correction or on a confirmed breakout above 4382, rather than trying to chase the price at the highs.