Gold is trading around 2,160, above the 200 EMA, and above the 5/8 Murray. We expect that the XAU could reach 6/8 Murray in the coming days because the H1 chart shows an uptrend. So, the instrument could reach the key level of 7/8 Murray at 2,218 in the short term .
According to the H1 chart, gold is trading within a symmetrical triangle pattern. A sharp break below or above this pattern is anticipated in the coming days. This might cause a strong movement in gold and the price could reach 2,220 or 2,125.
Investors will be attentive to the FED Chairman's speech on March 20 as his rhetoric could indicate the direction of gold in the short term. In case he signals a possible interest rate cut, it could cause a strong bullish momentum and gold could surpass the psychological level of 2,200.
On the contrary, if Jerome Powell announces that he will need more time to lower inflation, we could expect a drop in gold and the price could reach the psychological level of 2,100 in the coming days.
The daily pivot point is located around 2,157. If gold continues to trade above this area and above 5/8 Murray in the next few hours, we could expect it to continue rising until reaching the resistance 6/8 of Murray located at 2,187. Beyond this level, it is easy for gold to reach 2,218.
Conversely, if the XAU/USD falls below the 200 EMA located at 2,150, we could expect a change in trend and the instrument could reach 4/8 Murray at 2,125 and below 5/8 Murray. Such moves will be seen as a signal to sell.