In the last few hours, Gold has been trading within a consolidation, above the 200 EMA and around the 2/8 murray line. On Monday, it rose to the pivot point of 1,819, but downward pressure drove back it towards the 1,806 level.
Traders are waiting for some direction from gold. As long as these levels of consolidation continue, there could be a range movement between $1,800 and $1,812.
The price of Gold is currently in the $ 1,810 zone, which is where the 21-day moving average is passing. If it stays below 1,812, it could continue its consolidation. But a break of the 200 EMA located a little lower at 1,806 would accelerate the decline to the weekly support of 1,790.
If it surpasses 1,812 and consolidates above this level, gold will have a next resistance at 1,820, and could rise to the double top of 1,832. The break and consolidation above 1,812 would remove the current weakness and leave the price ready to extend its route, possibly around 1,843, the area of 3/8 of murray.
On Wednesday, it will be the turn of the ADP employment report, which is the previous one to the official report on Friday with the non-farm payrolls and the unemployment rate. This data could add volatility to gold, so we must be vigilant.
Gold is likely to be trading within a wide range from 1,795 to 1,820 through Friday as traders are cautious and refraining from increasing a buying volume ahead of the important US Non-Farm Payroll data.
The key point according to the 1-hour chart is to buy above the 200 EMA located at 1,806, the target will be the 1,812 and 1,820 zone. Below the key point we can sell with targets at 1,795 and 1,790.
The eagle indicator is located in an overbought zone, according to the 1-hour chart, which could be that the volume of purchases and sales is decreasing and the market has not taken a direction yet. So, it may also could happan that it is showing a signal of caution.
Support and Resistance Levels for August 03 - 04, 2021
Resistance (3) 1,826
Resistance (2) 1,820
Resistance (1) 1,812
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Support (1) 1,806
Support (2) 1,798
Support (3) 1,792
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Trading tip for GOLD for August 03 - 04, 2021
Buy above 1,806 (EMA 200), with take profit at 1,812 (2/8) and 1,820, stop loss below 1,800.
Sell below 1,803 (EMA 200), with take profit at 1,792, stop loss above 1,808.
