In our previously published analysis on 28th Aug we anticipated some bullish and bearish conditions, the Relative Strength Index (RSI) indicator on the daily chart climbed to 60 back then, suggesting that there was more room on the upside before the pair becomes technically overbought. The initial hurdle is located at 1830 ahead of 1845. On the downside, 1810 exponential moving average 100 and 200 aligns as key support. As long as this level holds, buyers are likely to remain in control of gold's action. A daily close below 1810 could open the door for additional losses toward 1800 (psychological level and 1780. A very important point to note on weekly time frame is that if Gold provided us with a bullish closing above 1834-1840 then it would invalidate the bearish wave count and enter into the continuation of bullish trend again, leading the pair towards 1860 and 1916.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Gold extended its sideways consolidative price action through the first half of the European session on Thursday and remained confined in the weekly trading band. Currently hovering around the $1,815 region, fading hopes for an early Fed lift-off continued acting as a tailwind for the non-yielding yellow metal. The market speculations were further fueled by Wednesday's disappointing ADP report, which showed that the US private-sector employers hired far fewer workers than expected in August.

Gold has kind of found support on a temporary note at 1810 but the sideways extended consolidated structure is denoting that 61.8% fibb retracement level and 1825 price actions are going to act as a strong resistance and prevent the commodity from any further gains. 

XAUUSD

Sep 02 2021

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