Daily Outlook

    The current technical outlook for gold (XAU/USD) on March 4th reveals a slight downtrend, with the price at $2081.125, marking a 0.10% decrease. The commodity is navigating a cautious path below its pivot point of $2086.70, indicating potential resistance ahead. The key resistance levels to watch are at $2098.43, $2108.83, and $2117.94, which if breached, could signal a bullish reversal. Conversely, immediate support is found at $2073.10, with further cushions at $2064.30 and $2050.70, suggesting areas where declines might find a floor.

    Technical indicators provide a more nuanced view. The Relative Strength Index (RSI) stands at 77, hinting at overbought conditions that could precipitate a pullback. The formation of an inverted hammer pattern on the 4-hour timeframe reinforces this bearish outlook, suggesting potential for a correction. Moreover, the 50-Day Exponential Moving Average (EMA) at $2040.07 offers underlying support, highlighting a significant gap between current prices and the medium-term trend line.

    Given these observations, the strategy leans towards a bearish bias with a recommended entry price for selling below $2085. Targets for taking profit and stopping losses are set at $2069 and $2098, respectively. This approach underscores a cautious stance in the short term, advising traders to watch for potential shifts around pivotal levels that could dictate the next phase in gold's price trajectory.

    GOLD Price Chart - Source: Tradingview
    GOLD Price Chart - Source: Tradingview

    GOLD - Trade Ideas

    Entry Price – Sell Below 2085

    Take Profit – 2069

    Stop Loss – 2098

    Risk to Reward – 1: 1.2

    Profit & Loss Per Standard Lot = +$1600/ -$1300

    Profit & Loss Per Mini Lot = +$160/ -$130



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