Gold Price Forecast: XAU/USD could see a pullback amid overbought conditions

Gold price hit fresh nine-month highs at $1,929 before pulling back sharply to $1,915. Overbought conditions could threaten XAU/USD bulls, FXStreet’s Dhwani Mehta reports.

RSI holds well above 70.00

“Gold price has pulled back sharply from a nine-month top of $1,929, as suggested by an overbought 14-day Relative Strength Index (RSI). The daily RSI currently stands at 75.21, well past the critical 70.00 level.”

“A sustained break below $1,917 could trigger a further correction toward the $1,900 threshold.”

“If Gold bulls manage to regain control and take out the multi-month high, then a fresh upswing toward the $1,940-$1,941 supply zone could be in the offing. The next stop for XAU/USD is seen at $1,950, the psychological level.”