📉 Trade Setup: Bearish Signal Developing on XAUUSD

Fundamental Outlook for XAUUSD

Gold prices (XAUUSD) face a tug-of-war between bullish and bearish drivers amid recent developments. On the fundamental front, Amex Exploration’s updated Preliminary Economic Assessment (PEA) for its Perron Gold Project highlights robust economics, including a post-tax NPV of C$1.1 billion and average annual production of 112,000 ounces. This underscores longer-term confidence in gold’s supply-demand dynamics, especially as ambitious projects align with sustained high prices above $2,500/oz. However, short-term headwinds dominate: reports of heavy selling pressure in Asian markets, particularly from Chinese investors, have driven XAUUSD below $3,530, erasing recent gains. Profit-taking after gold’s historic rally and potential liquidity adjustments ahead of key central bank meetings are exacerbating the downside. This blend of strong structural fundamentals and immediate bearish sentiment creates a volatile environment for traders to navigate.

From a XAUUSD Technical Analysis perspective, the metal has broken below the critical $3,550 support level, signaling a potential shift in momentum. The daily chart shows a "lower high" pattern forming since late August, with the Relative Strength Index (RSI) dipping toward 40, suggesting weakening bullish strength. A retest of the $3,495.26 support zone (our take-profit target) appears likely if selling persists, especially with volumes rising during Asian trading hours. The $3,580.50 stop-loss level aligns with recent resistance near the 50-period moving average on the 4-hour chart, providing a logical barrier against unexpected reversals. Pairing this technical setup with the XAUUSD Trade Signal outlined (Entry: $3,548.48, TP: $3,495.26, SL: $3,580.50) offers a balanced risk-reward ratio, acknowledging both the bearish momentum and gold’s inherent safe-haven resilience. Traders should monitor Asian session flows closely, as further liquidation could accelerate the downtrend toward $3,495.

RSI Strategy & Trend Setup in XAUUSD

Price action recently formed a swing high (top) at 3580.50. Since then, the market has reversed and is now trading near OVERBOUGHT RSI levels, often seen as a signal of potential downside momentum.

The current 30-minute price structure is forming a clean sequence of lower highs and lower lows, validating directional strength. This setup meets our criteria for momentum-based trade signals.


✅XAUUSD Sell Forecast – Key Entry & Risk Points


  • Selected Symbol: XAUUSD
  • Trend Type: Bearish
  • Entry Level:Sell @ 3548.48 or Better Price
  • Profit Exit: 3495.26
  • Initial Stop: 3580.50
  • Risk Analysis:0.5% of equity
  • Entry Issue at: 2025.09.04 18:10



📝 XAUUSD Signal Guidelines & Risk Advice

  • Use a stop-limit order if volatility spikes around key levels.
  • Avoid entering during high-impact trading news related to XAUUSD to reduce risk of sudden volatility.
  • This RSI trading signal works best when there's no overlapping economic calendar events.
  • Apply a 1:1.5 risk-reward ratio for this XAUUSD forecast if sl or tp missing to maximize profitability.
  • Use this signal with our scalping strategy or swing trading setup depending on your time horizon.

"In Trade, the patient trader wins the long game."

Disclaimer: All trading decisions on XAUUSD remain your sole responsibility. We do not guarantee results.


XAUUSD Sell Signal Chart - RSI Technical Setup and Forecast 2025.09.04 18:10