August 10, 2021

Gold - XAUUSD Pivot Points - 10th Aug. 2021

Yesterday, Gold experienced what we called a “flash crash” dropping massively below the $1700 psychological level at the start of the Asia trading session.

This was obviously from the fact that Gold was still experiencing the effect of a stronger-than-expected US data report and a strong US dollar.

But after the massive drop in price, Gold steadied from its overnight “flash crash” before the start of the European trading session.

On the other hand, in the Gold futures market, over 3,000 Gold contracts change hand in a minute window, which is equivalent to over $500 million notional value as activity surged in a typical quiet trading period.

After recovering over 90% of the drop in price, Gold – XAUUSD went on to end the day at $1729.58 which was around the second support, S2, area of the Gold daily pivot point for the day.

Using pivot point analysis, we will calculate the Gold – XAUUSD Pivot Points for today to determine our range of trading environment as the bull tries to make a comeback.

Gold – XAUUSD Pivot Points – 10th Aug. 2021

Gold currently wallows at its multi-month lows as a result of a stronger US dollar and a rise in US bond yield, plus a bet over the Federal Reserve tapering stimulus earlier than expected.

The bear trend is still intact and prices could still tank lower before a trend reversal takes place, as fundamental factors still moving in favor of the US dollar.

Below are the calculated pivot point, support, and resistance levels for 10th August 2021.

Gold – XAUUSD Pivot Points – 10th Aug. 2021

Resistance 3R31813.17
Resistance 2R21801.46
Resistance 1R11794.32
Pivot PointPP1782.61
Support 1S11775.47
Support 2S21763.76
Support 3S31756.62

These are the important pivot points, critical support and resistance levels, and our daily Gold forecasts for traders today.

And also, the price opened well above Pivot Point, with an opening price of $1729.58. While anything is possible in forex, it is very unlikely that Gold – XAUUSD will reach resistance 3 (R3) at the $1853.40 mark, or resistance 2 (R2) at the $1809.10 mark.

On the other hand, with today’s Gold – XAUUSD Pivot Point analysis, it is likely that Gold will attempt to reach resistance 1 (R1) and well above it at the start of the European session or revert back to Support 1, (S1) and Support 2, (S2) at the start of the New York session will the bear are still in control.

As with any other business, trading involves risk. discipline and proper risk management will pay in the long term.

Wish you all a successful trading.

About the author 

Emmanuel Uzoezie

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