Gold reversed an early dip to over one-week lows and is currently placed at fresh session tops, around the $1203 region. However, what does the 1-hourly chart suggest for prudent traders? Find out in the following 3 September XAUUSD Price Technical Forecast.
3 September, OctaFX – A combination of supporting factors, ranging from a subdued US Dollar price action and the prevalent risk-off mood, helped the precious metal to recover early lost ground to an intraday low level of $1195.68.
The USD struggled to build on its early uptick and extended some support to the dollar-denominated commodity.
Gold Fundamental Highlights
Adding to this, a slight deterioration in investors’ appetite for riskier assets, as depicted by a negative tone around European equity markets further underpinned the precious metal’s safe-haven demand and collaborated to the intraday rebound.
The latest disappointment from the US-Canada trade negotiations was seen as a bad sign for the ongoing US-China trade spat. Given that the US President Donald Trump is ready to impose tariffs on an additional $200 billion worth of Chinese imports, the development continued weighing on market sentiment at the start of a new trading week.
Further gains, however, remained limited as traders seemed reluctant to place any aggressive bets amid holiday-thinned liquidity conditions and ahead of this week’s important US macro releases, including the keenly watched non-farm payrolls data.
XAUUSD Price Technical Forecast
The commodity, over the past one week or so, has been oscillating within a downward sloping trend-channel formation on the 1-hourly chart, suggesting near-term negative bias. Bulls, however, have been showing resilience below the key $1200 psychological mark.
Hence, it would be prudent to wait for a convincing break through the mentioned support before positioning for any further near-term downfall.
On the upside, sustained move beyond the trend-channel hurdle, currently near the $1206 region, would invalidate the bearish outlook and trigger a short-covering bounce back towards $1214 intermediate resistance en-route the $1217-18 supply zone.
This article about 3 September XAUUSD Price Technical Forecast was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.