Gold is trading below the SMA of 21 around 1,792. In the European session, it reached the level of 1,796. However, it could not consolidate above the moving average and gold is likely to make a correction to the EMA 200 around 1,781.
In the next few hours, if the price of gold consolidates below 1,792, the weakness could intensify and a decrease could occur around the level of 5/8 of a murray at 1,781. At this level, a technical rebound is expected because it converges with the EMA of 200.
According to the daily chart, it can be seen that gold is consolidating below the 200 EMA located at 1,796. If in the nest few hours or even days, gold consolidates below this level, a downward movement is likely to follow and gold could fall towards the zone of 4/8 murray around 1,750.
On the other hand, a consolidation above yesterday's high (1,795) would be a positive sign for gold and the price could rise to the level of 1,812 (6/8). This strong resistance in the previous weeks has acted as a strong barrier. If the metal exceeds this level, it could reach 1,843, zone of 7/8 murray that represents a reversal.
The key level to monitor is the area of 1,795. Above this level, there will always be the opportunity to continue buying gold and below this level there is the possibility of a downward movement towards 1,781 and until 1,750.
The eagle indicator is showing a bearish signal. A break of the uptrend channel below 1,788 will be a signal for the decline until 1,751.If it breaks the 200 EMA, we expect a fall until the next bearish channel around 1,773.
Support and Resistance Levels for November 02 - 03, 2021
Resistance (3) 1,812
Resistance (2) 1,805
Resistance (1) 1,799
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Support (1) 1,782
Support (2) 1,772
Support (3) 1,776
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A trading tip for GOLD for November 02 - 03, 2021
Sell below 1,788 (weekly pivot) with take profit at 1,781 (EMA 200) and 1,773 (uptrend channel), stop loss above 1,795.
