FX.co ★ Trading Signal for GOLD on September 03 - 06, 2021: Buy above 1,816 (Symmetrical Triangle)

Gold is trading at 1,814, just above the SMA of 21 which has formed a symmetrical triangle pattern. A break above 1,816 could push the price up to resistance of 1,833 and up to the 7/8 of murray located at 1,843.

In a few hours, the US government employment report for August will be released. The US economy is expected to have created 750,000 jobs in August. If the data is negative for the US dollar, gold could spike in response to the publication until resistance of 1,843.

On the contrary, if the data confirms a robust employment increase, or it is better than expected, a strong bearish movement could occur about gold. Only if it consolidates below 1,812, there is strong support of 6/8 of murray and the SMA of 21 with targets at the EMA of 200 around 1,795.

Since the beginning of the week, gold has been consolidating inside the lower and upper borders between 1,800 and 1,816. Gold is likely to follow with its next downward movement. For this, it should trade below 1,795. There is the EMA of 200 that has become its dynamic support.

If the gold price approaches the 1,795 level, tests this support, proves to be very strong, and fails to break it, there will be a good opportunity to buy at a technical bounce with targets at 1,812 and 1,833.

On the contrary, to ensure its upward movement, gold must consolidate above 1,816, above the triangle pattern, and above the 6/8 support. Then, gold could rise to the level of 1,833. If the bullish force prevails, the price could rise to 1,843.