GOLD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- RSI at 76 signals overbought conditions, suggesting a potential pullback.

- Immediate resistance stands at $2,574.26, with support at $2,557.04.

- A sell position below $2,575 targets $2,557, with a stop-loss at $2,585.

Gold (XAU/USD) is currently trading at $2,568.68, marking a modest increase of 0.35% as it hovers near critical technical levels.

The precious metal has sustained bullish momentum in recent sessions, but key indicators suggest a potential pause or slight retracement.

With the Relative Strength Index (RSI) elevated at 76, gold is in overbought territory, signaling the possibility of a near-term pullback.

The pivot point stands at $2,564.78, acting as a critical juncture for future price movements. Immediate resistance is seen at $2,574.26, followed by $2,585.24 and $2,596.51, which could cap further upside if the momentum falters.

Should prices break through these resistance levels, the bullish trend may continue, potentially targeting new highs.

However, the downside risk is notable given the elevated RSI and potential for profit-taking. Immediate support sits at $2,557.04, with subsequent support levels at $2,546.20 and $2,536.91.

A failure to hold these levels could shift the sentiment towards a more bearish outlook, especially as the 50-day Exponential Moving Average (EMA) at $2,511.14 provides a more medium-term support foundation.

From a technical perspective, a sell strategy below $2,575 appears prudent, with a take-profit target of $2,557. This setup aligns with the overbought conditions and the possibility of a near-term correction. A stop-loss at $2,585 is recommended to manage risk, should bullish momentum persist unexpectedly.

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2575

Take Profit – 2557

Stop Loss – 2585

Risk to Reward – 1: 1.6

Profit & Loss Per Standard Lot = +$1800/ -$1000

Profit & Loss Per Mini Lot = +$180/ -$100