August 11, 2021

Gold - XAUUSD Pivot Points - 11th Aug. 2021

Gold – XAUUSD setup remains quite bearish and our forecast remains short on Gold.

As the psychological level below the $1760 mark gets weaker, Gold may decline back towards the $1700 and below. But a breakout above this level could see Gold aiming for the $1792 and $1800 level.

“Gold’s worst enemy remains a stronger dollar, and that might remain the theme until the Fed makes the formal taper announcement. But in the meantime, the US dollar will continue to be the dominant driver for gold.

While Gold is trying to make a re-bounce, the bounce is weak and its technicals look awful while the metal’s worst enemy – a stronger USD – weighs on its potential recovery.

As traders, this gives us more opportunity to go short on Gold – XAUUSD.

According to the Gold – XAUUSD pivot points analysis for yesterday, we see the precious metal trading above its pivot point but unable to rally up to its first resistance during the European session while trading below its pivot point and mid-way into its first support S1 during the New York trading session.

Gold – XAUUSD Pivot Points – 11th Aug. 2021

Using our pivot point analysis, we will calculate for Gold – XAUUSD to help determine our range of trading environment for today.

These pivot points are like technical support and resistance areas to keep us in check and one of the best ways to using pivot points in forex is to make a counter trade as price approaches these support and resistance areas.

Gold – XAUUSD Pivot Points – 11th Aug. 2021

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

With price opening at $1729.17, few pips above the Pivot point, let’s see if this bullish start can break above the first resistance at $1739, and if so, the bull will key an eye on the second resistance R2 at $1748.90

If not, this might give the bear a run toward its first support level at $1718.58 and giving traders the opportunity to go short at the end of first resistance with proper confirmations.

On the other hand, for Gold investors, this period is a perfect time to buy Gold as a precious metal even as the metal approaches its all-time low.

According to the Egyptian billionaire Naguib Sawiris, Gold is the best investment to acquire when the world is concerned with rising prices. And he advises allocating up to 30% of a portfolio to gold.

But for traders like us, we profit at both ends of the price. But as with any other business model, trading has its own inherent risk. Discipline and proper risk management pay in the long term.

We hope you find today’s Gold – XAUUSD pivot points useful.

We wish you a profitable trading experience.

See you tomorrow.

About the author 

Emmanuel Uzoezie

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