GOLD Price Analysis and Trade Forecast: Daily Trading Signal

Daily Price Outlook

- Gold forms a descending triangle with a bearish engulfing candle near $3,342.

- RSI divergence and 50-EMA rejection confirm downside momentum.

- Break below $3,316 could accelerate losses toward $3,260 and $3,228.

Gold prices are under pressure as they flirt with a critical breakdown below the $3,316 support zone, following a textbook lower high rejection around $3,342.

The market is tracing a descending triangle, defined by falling highs and a flat base near $3,314, reinforcing bearish sentiment. The 50-period EMA at $3,367 has turned decisively downward, acting as dynamic resistance, and capping intraday rallies.

A sequence of spinning tops and Doji candles formed along the descending trendline—most recently at $3,342—signals market indecision and exhaustion of buying momentum.

Notably, the failure to breach this zone confirms the pattern of lower highs, supported by a short-lived three white soldiers pattern that reversed into a bearish engulfing candle.

Adding weight to the bearish case is the RSI, which currently sits at 42.41. A clear bearish divergence emerged earlier this week, as prices posted higher highs while RSI made lower highs—often a prelude to deeper pullbacks. A crossover below the 50-level confirms the shift toward downside momentum.

If gold breaks below $3,316 on strong volume, it may open the path to $3,260 and possibly $3,228. Key trendline support drawn from the April 10 low coincides with this confluence zone, making it the next battleground for bulls.

However, a sharp move above $3,357 would invalidate the short setup and could pave the way for a retest of $3,386.

GOLD (XAU/USD) - Trade Ideas

Entry Price – Sell Below 3316

Take Profit – 3259

Stop Loss – 3357

Risk to Reward – 1: 1.3

Profit & Loss Per Standard Lot = +$5700/ -$410

Profit & Loss Per Mini Lot = +$570/ -$410