Daily Price Outlook

- Gold's surge to $2,258.75 underscores a bullish momentum, challenging the resistance at $2,285.

- Overbought RSI at 81 and the Doji pattern signal potential market recalibration.

- Strategic trades may consider a sell below $2,265, targeting $2,240, with a stop loss at $2,285.

Gold’s performance on April 1st exhibited a notable rise, closing at $2,258.75, marking a 1.23% increase. This upward trajectory situates gold above the pivotal $2,240, indicating a persistent bullish momentum. Resistance is eyed at $2,285, $2,303, and $2,319; breaching these could foster further gains. Conversely, support positions at $2,249, $2,238, and $2,220 provide potential fallback points.

The technical landscape reveals an RSI at 81, suggesting an overbought market, which could precede a pullback. A notable Doji candlestick below $2,266 might signal a forthcoming market sentiment reversal, potentially initiating a bearish phase. Despite the bullish "three white soldiers" pattern, the market's overbought state hints at a forthcoming correction.

The 50-day EMA at $2,183 solidifies the gold's bullish trend, yet market players should stay vigilant of upcoming economic data and Fed communications, which could significantly sway market directions. The upcoming U.S. ISM Manufacturing PMI and Fed members' speeches will provide insights into economic health and monetary policy, influencing market dynamics.

Given these factors, a cautious trading strategy would be advisable. Considering selling below $2,265, targeting a take-profit at the pivot of $2,240, and setting a stop-loss at $2,285 could align with the current market's technical and fundamental outlook.

In summary, while gold maintains a bullish stance above $2,240, the heightened RSI and specific candlestick patterns suggest a potential near-term correction.

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

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 2265

Take Profit – 2240

Stop Loss – 2285

Risk to Reward – 1: 1.2

Profit & Loss Per Standard Lot = +$2500/ -$2000

Profit & Loss Per Mini Lot = +$250/ -$200



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