Daily Price Outlook

    * Labor Day holiday leads to low trading volume and liquidity as banks and financial institutions are closed.

    * Precious metal market struggles to break above $1985 resistance; strong bearish bias due to technical indicators.

    * Today's trading strategy: short positions below $1985, targeting $1976, with a stop-loss above $1990.

Good morning everyone, and welcome back. This week starts with a national holiday, Labor Day, resulting in the closure of most banking sectors and financial institutions today. Consequently, trading volume and liquidity are expected to remain low.

Examining the technical side of the precious metal market, it is struggling to break above the $1985 resistance level. This resistance is reinforced by the 50-day exponential moving average, and the formation of two bearish shooting star candles below the $1985 level suggests a strong bearish bias. On the downside, gold is likely to find support around the $1980 level, and a decisive break below this level could trigger further selling towards $1976.

Looking at key technical indicators such as MACD and RSI, both are exhibiting bearish momentum, as they reside in the sell zone below 50 and zero, respectively. This suggests that selling pressure may dominate the market today.

With this in mind, today's trading strategy is to look for short positions below $1985, targeting $1976, with a stop-loss set above $1990.

 GOLD Price Chart - Source: Tradingview

Gold (XAU/USD) Trade Idea

Entry Price – Buy Above $1985

Stop Loss – $1990

Take Profit – $1975

Risk to Reward – 1 : 2

Profit & Loss Per Standard Lot = +$1000/ -$500

Profit & Loss Per Micro Lot = +$100/ -$50



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