Daily Price Outlook

- Gold faces key resistance at $2215, hinting at a potential pullback.

- Overbought conditions suggest caution, with a possible reevaluation of gold’s valuation.

- Investors to watch for sell signals below $2215 for risk management.

Gold's price edged higher, gaining 0.81% to settle at $2204.155 on March 21, highlighting investors' continued interest in the safe-haven asset amid economic uncertainties. With the market hovering near the pivot point at $2205, gold faces significant resistance levels at $2215, $2225, and $2235, which are crucial barriers to its upward trajectory. Conversely, support levels at $2195, $2186, and $2177 offer a foundation should the price retrace.

Technical indicators suggest a cautious outlook; the Relative Strength Index (RSI) at 77 points towards overbought conditions, indicating potential for a pullback. Moreover, with the 50-Day Exponential Moving Average (EMA) at $2160, gold's price action has notably distanced itself from recent averages, suggesting a potential reevaluation of its current valuation.

Investors should watch the $2215 resistance level closely, as a failure to breach this mark could lead to a sell-off towards the $2194 support level, with a stop-loss advised at $2225 to mitigate risk.

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

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2215

Take Profit – 2194

Stop Loss – 2225

Risk to Reward – 1: 2

Profit & Loss Per Standard Lot = +$2100/ -$1000

Profit & Loss Per Mini Lot = +$210/ -$100



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