GOLD Price Analysis and Trade Forecast: Daily Trading Signal

• Gold is facing resistance at the $1,970 level, leading to a consolidation phase.

• Support is found at the $1,938 level, and a breakdown below this level may drive gold towards $1,920 or lower.

• Technical indicators like RSI and MACD are showing bearish signals, indicating selling pressure in gold prices.

On Tuesday, the price of gold is currently experiencing a challenge in surpassing the $1,970 level, leading to a consolidation phase. It is finding support around the $1,938 level, and a breakdown below this level could potentially drive gold towards the next support level at $1,920 or even lower towards $1,915.

Examining the technical indicators, both the RSI and MACD are showing signs of bearishness. The RSI has crossed below the 50 level, indicating a strong selling pressure in gold prices. Additionally, the MACD is forming shorter histograms, further confirming the bearish sentiment.

Currently, the double bottom pattern is providing significant support at the $1,938 level. If gold manages to break below this level, it is likely to continue its downward trend.

On the other hand, on the four-hour timeframe, there is a downward trend line acting as a major resistance for gold. A successful breakout above this trend line would suggest a potential continuation of the selling pressure below the $1,955 level.

Therefore, it is crucial to monitor the $1,938 level closely. If gold remains above this level, a corrective bounce towards $1,955 is possible. However, a breach below $1,955 could signify a renewed selling interest in the precious metal gold.

GOLD Price Chart – Source: Tradingview

GOLD - Trade Idea

Entry Price – Sell Below 1955

Stop Loss – 1975

Take Profit – 1915

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$4000/ -$2000

Profit & Loss Per Micro Lot = +$400/ -$200