FX.co ★ Trading signal for GOLD on December 08 - 09, 2021: buy above $1,781 (2/8)

Gold (XAU / USD) is trading above the support of 2/8 Murray and above the 21 SMA. From the low of 1,761, gold is rebounding, having formed an uptrend channel. At this moment, it is trading at 1,785. The correction could slow down around 1,781 or 1,777. If a rebound occurs around 2/8 Murray or at the bottom of the uptrend channel, gold could resume its upward movement and reach the EMA of 200.

Optimism around the less severe effects of the new Omicron variant has caused the safe-haven US dollar to fall. Instead, the price of gold hit new weekly highs, also benefiting from weak Treasury yields.

Investors are awaiting the policy decision that the Federal Reserve will make next week. For this, the inflation data that will be published on Friday in the US will be important.

Given that it is now above the 21-moving average, the yellow metal is likely to try to break the top of bullish channel and the EMA of 200, and thus to rise to the zone of 4/8 Murray around 1,812.50.

Above 1,800 (200 EMA), gold could gain momentum and will get more attractive to investors. Above this level, the road will have no obstacles to climb to 1,812. If this level is surpassed, the final target of 1,843 will be reached.

On the contrary, if XAU / USD weakens and trades below 1,773, it is likely that the downward pressure will again push it down to the low of 1,765 (1/8) and if it breaks this support towards the psychological level of 1,750.

Our trading plan for the next few hours is to buy gold as it consolidates above 2/8 Murray at 1,781 or if the pirce rebounds at 1,777 (uptrend channel) with targets at 1,800 (200 EMA) and through 1,812. The eagle indicator is showing a positive signal, which confirms our bullish strategy.

Support and Resistance Levels for December 08 - 09 2021

Resistance (3) 1,807

Resistance (2) 1,796

Resistance (1) 1,790

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Support (1) 1,774

Support (2) 1,775

Support (3) 1,758

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A trading tip for GOLD on December 08 - 09, 2021

Buy above 1,781 or in case of a rebound off at 1,777, with take profit at 1,800 (20 EMA) and 1,812 (4/8), stop loss below 1,773.