FX.co ★ Trading Signals for GOLD (XAU/USD) on February 7-9, 2024: key level of $2,030 (200 EMA - 5/8 Murray)

Gold is trading around 2,035.56, consolidating above the 200 EMA and above 5/8 Murray. On the H4 chart, we can see that gold rebounded after reaching the low of 2,015, a level that coincided with the bottom of the bullish trend channel forming since January 16.

The technical rebound that occurred yesterday favored gold which is now consolidating above the 200 EMA and above the key level of 2,030. This fact could mean that the XAU has a positive outlook for the coming hours and we expect it to continue rising. The metal could reach 2,045 and finally, the top of the uptrend channel around 2,058 and 6/8 Murray around 2,062.

On the contrary, if gold falls below the 200 EMA, we could expect it to resume its bearish cycles and reach the bottom of the trend channel around 2,020. A break of this channel could cause a bearish acceleration towards the psychological level of $2,000 that converges with 4/8 Murray.

The key level that gold has around 2,030 should remain intact only if gold consolidates above this area. Then, it could give us a positive signal for the coming days with the target at 2,060.

On the contrary, below this key level, the outlook will continue to be negative for gold and we could expect a sharp decline and a technical correction.

The market sentiment report shows that there are 58.90% of traders who are buying gold. This statistic shows us that gold could see a strong technical correction in the coming days as the instrument is likely to resume its bearish cycles and reach $2,000.

Our trading plan for the next few hours is to buy the XAU only if it trades above 2,030. Below this level will be seen as a clear signal to sell with targets at 2,017 and $2,000.