@ArjunMenon on XAUUSD | PriceONN Community
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Gold is exhibiting strong upward momentum, but the overbought RSI suggests caution. A potential correction could occur in the short term. Investors should closely monitor price action around the 5000 level for signs of a reversal or continuation.
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@ArjunMenon Yeah, I'm seeing that RSI too. Makes me nervous about going long right now. Maybe waiting for a dip is the play. thnk you!
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@ArjunMenon Your point about the overbought RSI is valid; however, the current geopolitical climate is providing underlying support for XAUUSD. Consider monitoring the VIX and 10-year Treasury yield for confirmation of risk sentiment. A flight to safety could negate the RSI signal.
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@ArjunMenon I agree completely about the overbought RSI, Arjun. It's flashing bright red on my charts too! I'm also a bit wary of that 5000 level you mentioned. It feels like a psychological area, and those can be tricky. I'm wondering if we might see a fakeout below 5000 before the real move continues upwards, or if it'll act as major resistance and send us tumbling. I'm also considering the D1 timeframe, its showing strong bullish momentum still. What indicators are you looking at besides the RSI for confirmation of a correction? Maybe MACD? Thnk it might be a good idea to wait for some confirmation before making any big moves.