European session, date: 08/06/2024
Gold Technical analysis XAUUSD today. The price of gold has witnessed significant fluctuations since the end of July 2024. The yellow metal rose significantly until the end of last week, but it witnessed a sharp decline at the end of the European session on Monday, August 5. These rapid movements reflect market changes, as gold is currently trading at $2,411 per ounce, after opening the week at $2444 and reaching its highest level at $2,458. In this technical analysis, we will review the reasons behind these fluctuations and the technical factors affecting gold.
Gold Technical analysis XAUUSD: Overview
After a strong rise that lasted for several days, gold witnessed a sharp decline at the end of the European session on Monday, which led to a drop in the price to $2,364 per ounce, which is its lowest level so far this week. This decline reflects the impact of global economic and political factors on gold prices as a safe haven. Despite this decline, gold is currently attempting to rebound, trading at $2,411 per ounce, indicating some buying power trying to stop the decline.
Technically, gold is trading below most of the moving average crossovers, indicating weak upward momentum and the absence of strong technical support. This situation enhances the possibility of continued price fluctuations in the coming days, especially with the lack of clarity in the general market direction.
In addition, the MACD indicator shows weakness in the sellers’ strength, indicating a decline in downward momentum. This discrepancy between the price and the indicator may be an indication of a possible bullish rebound soon, especially if the weakness continues in the downward direction.
Fundamental factors:
Gold prices are affected by global economic and political factors, including monetary decisions and financial policies. Trade and political tensions, along with important economic data, play a major role in determining the price direction. In this context, investors are advised to follow global news and its effects on the market.
Trading strategies based on Buy/Sell levels
| XAUUSD | In case of buying | in case of selling |
| Entry point | 2416 | 2408 |
| Target Point 1 (TP1) | First resistance: 2421 | First support: 2402 |
| Target Point 2 (TP2) | Second resistance: 2426 | Second support: 2397 |
| Stop Loss (SL) | 2408 | 2416 |
Gold has been highly volatile since the end of July, with a strong upward movement followed by a sharp decline. Traders are advised to monitor key technical levels, such as support at $2360 and resistance at $2450, to identify potential entry and exit points. It is also important to follow economic and political news that may affect prices. In light of this volatility, making informed trading decisions based on technical and fundamental analysis is crucial to success in the gold market.
