FX.co ★ Trading signal for GOLD (XAU/USD) on February 23-24, 2023: buy in case of rebound at $1,820 (21 SMA - double bottom )

Early in the American session, Gold (XAU/USD) is trading around 1,828.07, weighed down by the strength of Treasury yields and the US dollar. Gold's movement over the past few days has been muted due to strong consolidation. In the next few days. there could be a technical rebound and the asset could rebound to the psychological level of 1,900 again.

Investors are evaluating the impact of the Fed minutes. The US central bank seeks to combat inflation by raising interest rates, but not as aggressively as before. They have determined that there will be an increase of 0.25% in March, May and June.

According to the 4-hour chart, gold has found support at the 1,820 area. In case the price falls towards this area, it could form a double-bottom pattern. If this scenario comes true, a technical rebound could occur so that the instrument could reach the 1,845 area.

If bearish pressure prevails, we could expect gold to reach the 2/8 Murray area at 1,812. This level coincides with the bottom of the downtrend channel and could be seen as an opportunity to buy in case there is a technical bounce.

In case there is a daily close above 1,835 and above the 21 SMA, we could expect gold to accelerate its bullish movement and the price could reach the 200 EMA located at 1,861 and the 4/8 Murray located at 1,875.