Daily Price Outlook
- Gold's current bearish trend follows a breach of the critical $1920 support level.
- A successful break above this could expose gold to $1930-$1940, with $1930 as current resistance and past support.
- If recent $1914 support breaks, gold might decline to $1900-$1892.
The precious metal gold is currently trading with a bearish stance after breaching the critical support level at $1920. The formation of a potential double bottom pattern on the hourly timeframe suggests a potential continuation of the downtrend.
Presently, a temporary support seems to be forming around the $1915 level, which holds the potential to further drive selling pressure toward the $1900 level.
Additionally, observing the four-hour timeframe, the 50-day moving average indicates a probable resistance forming around the $1920 level. If gold manages to surpass this level, it may expose the price to the range of $1930 to $1940, where $1930 currently serves as resistance.
It's worth noting that this level previously acted as support on August 3 and August 4. In the event of increased demand for gold, a breakout above $1930 could propel the price toward $1940 to $1947.
Conversely, a breach below the recent support level of $1914 might drive the gold price down to the $1900 to $1892 range. Therefore, today's focus lies on the pivotal level of $1912, as a breakout below this point could potentially signal further selling trades.
GOLD(XAU/USD) - Trade Idea
Entry Price – Sell Below 1912
Take Profit – 1902
Stop Loss – 1922
Risk to Reward – 1: 1
Profit & Loss Per Standard Lot = +$1000/ -$1000
Profit & Loss Per Micro Lot = +$100/ -$100
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