Daily Price Outlook
* Gold is trading around $1980 with potential to reach $1986 resistance, as it enters an oversold territory in the one-hour timeframe.
* A bullish break above $1986 may lead to a target of $1989 (38.2% Fibonacci retracement), with a further break possibly reaching $1996.
* If selling bias dominates, gold may drop below $1979 and potentially fall to $1975 or further down, with a recommended stop-loss below $1975.
Currently, the precious metal gold is trading around $1980, with the potential to target the next resistance level at $1986. Examining the one-hour timeframe, gold has entered a bearish zone and is now in the oversold territory, indicating that buyers may be entering the market.
They are likely to aim for a 23.6% Fibonacci retracement at $1986. A bullish break above $1986 could lead gold price towards the next target of $1989, a level extended by the 38.2% Fibonacci retracement. An additional break above $1989 may expose gold prices towards $1996.
On the other hand, if selling bias dominates, gold may drop below $1979, with the potential to fall to $1975 or even further down. However, it is recommended to place a stop-loss below the $1975 level.
Gold (XAU/USD) Trade Idea
Entry Price – Buy Above $1980
Stop Loss – $1975
Take Profit – $1995
Risk to Reward – 1 : 3
Profit & Loss Per Standard Lot = +$1500/ -$500
Profit & Loss Per Micro Lot = +$150/ -$50
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