Gold: What's Next After Flash Crash? [Analysis 31.08.2026: Mon]

Probable Scenario Analysis: ⏺ Present Scenario: After the high-impact event on 28th August, Gold (XAUUSD) TVC:GOLD crashed badly. The instrument was sideways for the entire week as it was waiting for the crash on Friday. The flash crash happened after a prolonged formation of a "Head-and-Shoulders" (H&S) pattern. In the present scenario, there is no bullish setup. In fact, every upmove should be doubted. Try to find bearish opportunities only. 🟢 Bullish Scenario There is no sign of a bullish setup. However, if the price sustains above 4600, then the probable bullish targets would be - 4625 and 4650. 🔴 Bearish Scenario The price structure is lower-lows and lower-highs (LLs and LHs). Thus, a bearish setup is active. If the price remains below 4500, then stay bearish. The probable bearish targets below 4500 would be - 4475, 4450, 4425, and 4400. There is a strong support zone (SSZ) at (4425 - 4400). Next, if the price decisively breaks down below 4400, strong selling would emerge. The probable bearish targets below 4400 would be - 4375, 4350, 4325, and 4300. There is a strong support zone (SSZ) at (4325 - 4300). 🟡 No Trading Zone: (4600 - 4500). ⏺ Range of Consolidation (ROC): (4600 - 4400). Here, 4500 is the median of the ROC. The median works like a trading session sentiment evaluator. The price trading above the median would offer bullish sentiment, while the price trading below the median would trigger bearish sentiment within the ROC. ● Events: - 31 Aug (Mon): No events. - 01 Sep (Tue): FOMC Member Barr Speaks (06:30 PM IST, 🔵 Low Impact). ISM Manufacturing PMI (07:30 PM IST, 🔴 High Impact). - 02 Sep (Wed): ADP Non-Farm Employment Change (05:45 PM IST, 🟠 Medium Impact). Factory Orders m/m (07:30 PM IST, 🔵 Low Impact). - 03 Sep (Thu): Challenger Job Cuts y/y (03:00 PM IST, 🔵 Low Impact). Unemployment Claims (06:00 PM IST, 🟠 Medium Impact). ISM Services PMI (07:30 PM IST, 🟠 Medium Impact) - 04 Sep (Fri): Unemployment Rate (06:00 PM IST, 🔴 High Impact). ● Intraday, Weekly, and Monthly Bias Establish bias with respect to the opening price (of the particular session - Intraday, Weekly, and Monthly). If the price sustains above the opening price, then don't think of shorting. Look for bullish trades only. On the contrary, if the price sustains below the opening price, then don't think of going long. Look for bearish trades in that case. ● Disclaimer + End Note - All the analyses would fail in the case of a major gap up, gap down, or price structure anomaly. Thus, practice PRAGMATISM in the live session. - Trade only if there is a set-up. Remember, not trading is an extension of the trading activity. - Mark your points. Trade your points. Price is GOD. Anything can happen in the markets. Thus, trade what you see, not what you believe. - Always PRACTICE RISK MANAGEMENT. Always PROTECT YOUR CAPITAL. Be RESPONSIBLE. - Be Strategic. Be Courageous. Be Patient. Be Wise. - Every day is a new day. Thus, do not carry the baggage of past successes or failures. Leave the gardens of winning and losing. Establish yourself in equanimity. Always think from a new perspective. - Let the joy of trading drive your effectiveness, not greed or fear. Believe in Possibilities. Happy Trading!