Daily Price Outlook
- Gold price has experienced volatility, bouncing off the triple bottom support and breaking through the $1,970 resistance level.
- Immediate resistance is expected around $1,985, with potential targets at $1,990 and $2,000.
- Technical indicators are favoring a bullish outlook, with support from the 50-day exponential moving average.
The price of the precious metal gold is currently experiencing some volatility after bouncing off the triple bottom support level around $1,954. It has now broken through the $1,970 resistance level and is currently holding around $1,987. In terms of immediate resistance, it is likely to be encountered around the $1,985 level, with the potential to reach the next target levels of $1,990 or $2,000.
Looking at the leading and lagging technical indicators such as the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), all indicators are holding within a favorable zone. The 50-day exponential moving average is also providing significant support around the $1,970 level, further favoring the bullish outlook for gold.
However, it is important to monitor the key resistance level around $1,995, as a failure to break through this level could trigger a reversal and potentially lead to a bearish trend towards the $1,975 or $1,970 level.
On the other hand, if the triple top resistance level at $1,985 is violated, it has the potential to further propel the gold price towards the $2,000 level. It is important to note that market participants should closely monitor the upcoming US nonfarm payroll data and unemployment rate, as it could have a significant impact on price action.
GOLD Price Chart – Source: Tradingview
GOLD (XAU/USD) Trade Idea
Entry Price – Buy Above 1975
Stop Loss – 1962
Take Profit – 2000
Risk to Reward – 1 : 1.92
Profit & Loss Per Standard Lot = +$2500/ -$1300
Profit & Loss Per Micro Lot = +$250/ -$130
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