Gold prices were closed at $1710.53 after placing a high of $1735.38 and a low of $1708.78. Overall the movement of gold remained bearish throughout the day. Gold prices followed its previous day’s trend and continued to fall on Tuesday and reached near the level of $1700 support on the back of increased risk appetite in the market. The Risk-on market sentiment was caused by the reopening of the US economy from the coronavirus induced lockdowns.
From the American side, the US dollar remained under pressure against the Euro as the consumer confidence from the Conference board dropped to 86.6 against the expected 87.1 and weighed on the US dollar. The broad-based US dollar weakness pushed the already increasing XAU/USD prices lower on Wednesday.
The XAU/USD broke out of the descending triangle pattern, providing support at 1,718, and now it’s trading bearish at 1,706. The recent bearish trend in gold came in response to a downward channel supporting bearish bias among traders.
Entry Price – Sell 1708.81
Stop Loss – 1715.81
Take Profit – 1698.81
Risk to Reward – 1.43
Profit & Loss Per Standard Lot = -$700/ +$1000
Profit & Loss Per Micro Lot = -$70/ +$100