On the 25th of January, 2023, we published an article when the price of Gold reached the psychological level of $1900. We forecasted that Gold will rally to hit $2017. That target was reached in May 2023. This is the third time the price of Gold is retesting the resistance level at $2079 since August 2020 when the price hit $2079 for the first time. Price has been falling since the retest was reached. Last month’s candlestick closed bearish.
On the monthly chart, XAUUSD has been overbought on the RSI since August 2020 and has not shown any indications that price has been oversold. This is one of the reasons there might be a price fall in the coming weeks. Looking at the Bollinger bands on the weekly chart, price has crossed to the lower level of the Bollinger bands. On the weekly chart, price also shows that it has been overbought at three different times since 2020. We are seeing a bearish turn this month and it could continue as we might see the price of Gold fall below $1900 in the coming days or weeks.
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