Gold Rate Projection: XAU/USD might see a pullback in the middle of overbought conditions

Gold cost struck fresh nine-month highs at $1,929 prior to drawing back dramatically to $1,915. Overbought conditions might threaten XAU/USD bulls, FXStreet’s Dhwani Mehta reports.

RSI holds well above 70.00

” Gold cost has actually drawn back dramatically from a nine-month top of $1,929, as recommended by an overbought 14-day Relative Strength Index (RSI). The everyday RSI presently stands at 75.21, well past the important 70.00 level.”

” A continual break listed below $1,917 might activate a more correction towards the $1,900 limit.”

” If Gold bulls handle to restore control and secure the multi-month high, then a fresh growth towards the $1,940-$ 1,941 supply zone might be in the offing. The next stop for XAU/USD is seen at $1,950, the mental level.”