Technical analysis: Gold rally appears overextended but is set to continue
The XAU/USD daily chart depicts Gold's last uptick to new all-time highs, achieved on lower momentum, as depicted by the Relative Strength Index (RSI). As Gold reached the ATH, the RSI stood at 77.21, below its highest level reached on March 11 at 84.41, suggesting a negative divergence is forming.
Nevertheless, the scenario of a mean reversion move is riskier. Still, a break below $2,200 could sponsor a pullback toward the March 8 high turned support at $2,195, ahead of extending its losses to $2,150.
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