On Monday (September 16th), in the morning session of the Asian market, spot gold maintained a strong trend after a sharp rise last Friday, and the gold price is currently above $2581 per ounce. Analyst Nicholas Kitonyi wrote an article analyzing the future trend of gold.

Kitonyi stated that last Friday, gold prices continued to rise, reaching around $2581 per ounce. In the 60 minute chart, the gold price continues to trade within the upward channel.

Kitonyi added that gold prices have now risen above the 100 hour moving average. Therefore, the gold price trades at the overbought level of the 14 hour Relative Strength Index (RSI).

Boosted by the increasing expectation of a significant interest rate cut by the Federal Reserve at its upcoming policy meeting, gold prices surged in the second half of last week, reaching a historic high above $2580 per ounce.

Spot gold closed up $20.10, or 0.78%, at $2578.68 per ounce last Friday. Previously, the gold price surged by $47.30 at the close on Thursday.

The Wall Street Journal reporter Nick Timiraos, known as the "voice of the Federal Reserve," wrote in an article last Thursday that the Fed will cut interest rates at this week's meeting, which is almost certain. But how much to cut interest rates will be a evenly matched decision.

After the publication of the article, according to CME's "Federal Reserve Watch" tool, the likelihood of the Fed cutting interest rates by 50 basis points at its September meeting has risen from nearly 20% on Thursday morning to over 40%.

Spot gold surged by $81.43 last week, an increase of 3.26%. During last Friday's trading session, the gold price reached a record high of $2586.09 per ounce.

Two pictures to see the prospects of gold technology

In terms of short-term trends, Kitonyi stated that from a technical perspective, according to the 60 minute chart of gold, the price of gold is trading within an upward channel. After entering an overbought state, the 14 hour Relative Strength Index (RSI) also supports a bullish trend.

Therefore, gold bulls will seek to continue the current upward trend of gold prices and rise towards $2610 per ounce, or even higher at $2641 per ounce.

On the other hand, gold bears will seek to take profits when the price of gold falls to around $2548 per ounce or lower at $2518 per ounce.

(60 minute chart of spot gold)

Kitonyi pointed out that on the daily chart, gold is still trading in an upward channel. On the 14th, RSI also supports a bullish trend as it is on the brink of entering an overbought state.

Therefore, gold bulls will set their long-term profit target at around $2660 per ounce, or even higher at $2735 per ounce.

On the other hand, bears will seek profit taking when gold prices fall to around $2494 per ounce, or even lower at $2419 per ounce.

(Daily chart of spot gold)