Gold Price Forecast: XAU/USD enters the overbought zone but buyers may capitalize on any pullbacks

Gold price struggle with $1,900 extends. The yellow metal needs a close above the latter to add credence to the bullish potential, FXStreet’s Dhwani Mehta reports.

XAU/USD yearns for acceptance above $1,900

“Gold now looks to find a strong foothold above the $1,900 threshold. Daily closing above that mark is critical to unleashing the further upside toward May 2022 high at $1,910. A fresh upswing toward the $1,950 psychological level cannot be ruled out should Gold buyers regain complete control.”

“The 14-day Relative Strength Index (RSI) is peeping into the overbought territory, suggesting that there is enough room to the upside before a sustained correction kicks in.”

“Failure to yield a weekly close above the $1,900  level could put Thursday’s low at $1,872 under threat. Fresh weakness in XAU/USD could prompt sellers to target the $1,850 psychological level going forward.”