Daily Price Outlook
* Gold is exhibiting a strong bearish bias, declining from $2017 to $2007.
* The four-hour chart shows a significant bearish engulfing candle, indicating prevailing bearish sentiment.
* Gold is likely to target the immediate support level at $2004, with potential further declines towards $1990 and $1982, influenced by the violation of an upward trend line.
Good morning, everyone. Today marks the final trading day of the week, and gold is currently displaying a strong bearish bias, having dropped from the $2017 level to $2007.
On the four-hour time frame, we can observe that gold has formed a significant bearish engulfing candle, completely engulfing the previous bullish candle. This indicates that the bearish sentiment is prevailing in the market.
Given the current bearish sentiment, it is highly likely that gold will target the immediate support level at $2004. A break below this level has the potential to drive gold prices towards $1990 and $1982. This bearish outlook is primarily influenced by the violation of an upward trend line visible on the four-hour time frame.
As long as gold prices continue to close below this trend line, the bearish sentiment is expected to dominate the market, unless we receive any supportive fundamental news from the US economy.
Gold (XAU/USD) Trade Idea
Entry Price – Sell Below $2015
Stop Loss – $2025
Take Profit – $1990
Risk to Reward – 1 : 2.5
Profit & Loss Per Standard Lot = +$2500/ -$1000
Profit & Loss Per Micro Lot = +$250/ -$100
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