Early in the Asian session, Gold (XAU/USD) was trading around 1,975.34 below the 200 EMA and below 8/8 Murray.
Last week, gold was close to reaching the psychological level of $2,000. The maximum it recorded was 1,997. Since then, gold has made a strong technical correction that continues to this day.
However, a fall towards the daily support levels of S_2, S_3 or the weekly pivot point could be seen as an opportunity to buy with targets at 1,975 and at the psychological level of $2,000.
Given that the war between Israel and Hamas is rapidly expanding to more countries in the region, gold could once again gain bullish strength and could surpass 8/8 Murray and reach the barrier. +1/8 Murray is located at 2,031. If the bullish trend prevails, the following levels of May 10 are expected around 2,048. Finally, the metal could reach last year's high at 2,075.
According to the H1 chart, gold has been trading within an uptrend channel. However, bearish acceleration is expected in the next few hours if XAU/USD falls below 1,968 (7/8 Murray).
Gold is likely to bounce around the weekly pivot point at 1,958 which could be seen as a buying opportunity with targets at 1,968, 1,981, and $2,000.
Our trading strategy for the next few hours is to sell gold below 1,981. In case the GAP is covered and gold fails to break above the zone of 1,983, this could be seen as a signal to sell with the target at 1,958.