GOLD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

• Gold, the esteemed precious metal, is currently witnessing a notable downtrend, trading around the $1,910 mark after a descent from the $1,929 level.
• The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicators both hold positions in the sell zone, implying a potential continuation of the current downtrend, particularly if gold prices break below the $1,909 level.
• While resistance is forming around the $1,921 level and potentially at the $1,930 mark, a continuation of the downtrend can be anticipated if gold maintains its position below the crucial $1,920 level, with the next target potentially around $1,896 or $1,890 if it falls below $1,909.

The esteemed precious metal, gold, is currently experiencing a notable downtrend, trading around the $1,910 level following a dip from the $1,929 mark.

Upon observing the four-hourly timeframe, it’s evident that gold has breached the descending triangle pattern, which previously extended significant support around the $1,930 mark. Now, this same level is acting as resistance.

Analysing the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD), we find both indicators are situated firmly within the sell zone, implying a strong likelihood of a continuing downtrend.

With this in mind, should gold prices succeed in breaking below the $1,909 level, the next target could potentially be around the $1,896 or $1,890 levels.

On the flip side, we see resistance forming around the $1,921 level, with a further resistance point likely to materialize around the $1,930 mark if surpassed. In conclusion, it’s critical to keep a close eye on the $1,920 level.

A continuation of the downtrend can be expected if gold stays below this point, and more importantly, if gold prices manage to drop below $1,909, the subsequent target could potentially be situated around $1,896 or $1,890.

GOLD Price Chart – Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Sell Below 1915 Take Profit – 1898 Stop Loss – 1930 Risk to Reward – 1: 1.3 Profit & Loss Per Standard Lot = +$1700/ -$1500 Profit & Loss Per Micro Lot = +$170/ -$150