On the daily chart of gold, we can see that gold is trading below a downtrend channel that is projected from the maximum of June 1, when it reached 1,916. Now the asset is projected to close at the current level of 1,820. This channel is exerting downward pressure on gold.
The downtrend channel has been tested by gold on August 30. Now gold is trading below this channel. A new attempt to break this channel could occur, so the price should consolidate above 1,820. Only then we can expect a new bullish move that could push the price to 7/8 of murray at 1,843.00.
On the contrary, as long as gold is below 1,820 and below the downtrend channel, there could be a fall to the key support of 1,812, that is 6/8 of a murray. Below that level, there is the EMA of 200 at 1,805. These support levels will undoubtedly be a strong barrier for gold, in case there is a bearish move.
A consolidation on daily charts below the 200 EMA at 1,805, a decline to the 5/8 support is likely to follow. At the same level, the SMA of 21 is located. This area could trigger a bounce and it will be a good opportunity to buy gold.
Nonfarm Payroll data will be released this Friday and gold is likely to remain within a price range between 1,820 and 1,805. Wose-than-expected nonfarm payroll report could trigger a rally in gold towards $ 1,843.
Gold remains above the psychological level of 1,800, which suggests that interest in gold as a safe haven against inflation may be returning. It is likely that if it consolidates above 1,820, the metal could get rid of all obstacles. So, the price could rise until 1,875, a zone of strong resistance. If the rally continues, it can touch the level of 1,906.
Investors are alert to the government employment report this Friday. Gold could revise its path after this data. Weak data could push the price to the level of 1,975. On the contrary, upbeat data could take it to the support of 1,781, the zone of support 21 SMA.
Support and Resistance Levels for September 01 - 02, 2021
Resistance (3) 1,843
Resistance (2) 1,820
Resistance (1) 1,816
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Support (1) 1,805
Support (2) 1,795
Support (3) 1,781
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Trading tip for GOLD for September 01- 02, 2021
Buy above 1,820, with take profit at 1,833 and 1,843 (7/8), stop loss below 1,812.
Sell below 1,820, with take profit at 1,812 and 1,805 (EMA 200), stop loss above 1,827.
The material has been provided by InstaForex Company - www.instaforex.com