On Friday last week, gold rose from the low of 1,812 to the high of 1,832, the highest level in four weeks in light of the non-farm payroll figures. The precious metal closed the week around 1,827, about few pips below the high.
The US employment data was below expectations showing an increase in non-farm payrolls of 235,000, less than the 750,000 of the market consensuses. That data was the catalyst for Gold to rise to the maximum of 1,832.
Gold's advance encountered a strong barrier around the key resistance of 1,832, where the July and August highs are located.
The daily chart shows that the level of 1,832 is a strong barrier for Gold. If you look at the charts on July 15, on July 29, on August 4, and on September 3, gold has tested this resistance. Each opportunity that approached this level stopped its upward movement and then retraced below this zone.
Therefore, we believe that this time again if gold fails to consolidate above the strong resistance of 1,833, it could fall to the support of 1,812 and until 1,809 there is the 200 EMA and the 2/8 murray line.
At this level, it will be a good opportunity to buy gold, as it also represents a strong support for gold. As you can see in the chart, the bearish channel was broken on Friday, which kept the price under downward pressure. Now we would expect a pullback towards this 1,809 level for a new bullish wave, so gold could rise to the resistance of 1,843 and up to 1,906.
Conversely, a breakout and consolidation below 1,812 (6/8) and below the 200 EMA will be a negative sign for gold suggesting an opportunity to sell with targets at 1,781, the level of SMA 21 and support of 5/8 murray.
Our outlook will be bearish below 1,832 and bullish as long as gold is trading above 1,809. Therefore, these levels could give us a good opportunity to buy and sell in the coming days. The eagle indicator is showing a bullish signal on daily charts.
Support and Resistance Levels for September 06 - 07, 2021
Resistance (3) 1,862
Resistance (2) 1,848
Resistance (1) 1,837
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Support (1) 1,820
Support (2) 1,808
Support (3) 1,798
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Trading tip for GOLD for September 06 - 07, 2021
Sell below 1,832 (strong resistance), with take profit at 1,812 and 1,795, stop loss above 1,837.
Buy if gold rebounds at 1,809 (6/8), with take profit at 1,832 and 1,843 (7/8), stop loss below 1,804.
The material has been provided by InstaForex Company - www.instaforex.com