Daily Price Outlook

- Gold prices retract to around $1,998, signaling a cooling of the prior bullish trend, with the $2,000 pivot point being a key battleground for market direction.

- Technical indicators show neutrality with an RSI at 50 and a bearish MACD, suggesting potential shifts ahead amid economic data anticipation.

- The 50 EMA at $2,024.58 stands as a critical juncture; a consistent trade below could herald the start of a bearish phase for the precious metal.

Gold's market trajectory has recently seen a shift, with prices retracting to a near $1,998 per ounce, indicating a potential easing of the bullish fervor that characterized the previous sessions. The delicate balance of market forces is reflected in the 4-hour chart where the precious metal teeters around a significant threshold, suggesting a state of indecision among traders.

The immediate pivot point stands at $2,000, a psychological barrier that gold prices are struggling to reclaim. Overhead, resistance levels at $2,024.58 and $2,039.12 loom large, signifying potential headwinds that may stall an ascent. Conversely, support levels at $1,967.78 and $1,944.67 present a foundation that could arrest any further decline.

Within this technical framework, the Relative Strength Index (RSI) presents a neutral reading at 50, indicating a market equilibrium where buyer and seller momentum are in a standoff. Compounding this is the Moving Average Convergence Divergence (MACD) which, residing at -3.133, signals a bearish divergence as it trails below the signal line at -8.030, hinting at possible downward price action ahead.

The market's sentiment hinges on the 50-day Exponential Moving Average (EMA) at $2,024.58, which currently acts as a ceiling capping gold's upward movement. A persistent trade below this average could potentially confirm a shift towards a bearish trend.

GOLD Price Chart – Source: Tradingview
GOLD Price Chart – Source: Tradingview

GOLD (XAU/USD) - Trade Idea 

Entry Price – Sell Below 2002

Take Profit – 1977

Stop Loss – 2020

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$2500/ -$1800

Profit & Loss Per Mini Lot = +$250/ -$180



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