Resolute Mining Share Price Rallies as Gold Heads for a Fifth Consecutive Weekly Gain

Resolute Mining share price ASX ended the week higher as gold prices continue rising consecutively. The RSG stock price ended Friday’s trading session 11.76% higher at A$0.285. The stock has been on a strong rally since the start of the year, climbing more than 14% in the past week and 42.50% in the past month.

Resolute is Storming Higher

Resolute Mining Limited is an Australian company that operates as a holding company. The company engages in the exploration, development, and operation of gold mines across Australia and Africa. Resolute is headquartered in Perth, Australia.

Resolute Mining share price has been on a strong rally since the start of the year as gold prices make decent gains. The stock’s Relative Strength Index (RSI) has also been rallying, hinting at a surging demand for the stock.

Gold prices were on track for a fifth consecutive weekly gain on Friday on the back of a weak US dollar and hopes of slower US interest rate hikes. Spot gold hit its highest level since April 2022 in Thursday’s trading session, after climbing to $1,935.20.

Hopes of a slower US interest rate hike by the Federal Reserve saw gold prices edge higher. According to a Reuters poll, the Fed will end its aggressive monetary policy tightening after a 25-basis-point hike at each of its next two policy meetings. Investors are hopeful that after its next two policy meetings, the Federal Reserve will hold interest rates steady, at least for the rest of the year.

Resolute Mining Share Price Outlook

Resolute Mining share price has been hovering above its highest level since August 2022 for the past few days. The stock has managed to move above the 50-day and 200-day exponential moving averages (EMA). It has also moved above the 25-day and 50-day moving averages. Its Relative Strength Index (RSI) has slipped below the overbought zone but is holding above the neutral zone.

Therefore, I expect the RSG stock price to extend its rally in the coming months as bulls target the multi-month high at A$0.315. However, this bullish view will be invalidated if the price moves below the support at A$0.235.

RSG Price Chart

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