FX.co ★ Trading Signal for GOLD (XUA/USD) for September 5-6, 2022: buy above $1,708 (21 SMA - rebound)

Early in the American session, gold (XAU/USD) is trading at around 1,713 above the 21 SMA (1,708) and below the 3/8 Murray (1,718). In the European session, gold managed to consolidate above 1,708 (21 SMA). It is likely to continue its rise in the next few hours and may reach the top of the downtrend channel at around 1,730.

After the US employment report released on Friday, gold extended its recovery from its lowest in months. If it consolidates above the psychological level of 1,700 in the next few hours, it is expected to reach the EMA 200 area located at 1,751 in the next few days.

In the opposite direction, the 1,708 area (21 SMA) has become the key support. Below 1,700, the bearish bias could increase and the price could fall towards 2/8 Murray at 1,687.

From the global point of view for gold, the overall trend remains bearish. The bears' target is at 1/8 Murray around $1,656.

Only a close above the 200 EMA located at 1,751 could encourage the recovery of gold in the medium term and its price could reach the zone of the psychological level of 1,800 and could even exceed this level.

In the meantime, any attempt to recover gold will be seen as an opportunity to continue selling. If gold manages to reach the top of the downtrend channel at 1,730 in the next few hours, it will be seen as an opportunity to sell with targets at 1,708 and 1,687.

Conversely, if gold consolidates above 1,708 (21 SMA), it will be an opportunity to buy with targets at 1,718 and 1,730.

A daily close below 1,705 could mean a further bearish move and we could sell with targets at 1,696-1,687 (2/8 Murray).