FX.co ★ Trading signals for GOLD (XAU/USD) on March 7-8, 2023: buy above $1,843 (21 SMA - 3/8 Murray)

Early in the European session, Gold (XAU/USD) is trading around 1,846.9 within the uptrend channel, which has been underway since February 28, below the 21 SMA located at 1,850.

On the 1-hour chart, we can see a bounce in the support zone of 3/8 Murray which could open the door for gold to reach the top of the uptrend channel around 1,863.

Gold is expected to remain consolidated within a range between 1,838 (200 EMA) - 1,862 (resistance_2 daily).

In case gold falls below 1,837, a bearish movement could be triggered and the price could reach 1,818 where it left a gap open on February 28 and finally reach the support of 2/8 Murray located at 1,812.

Market participants prepare for Jerome Powell's testimony at the US Congress on March 7-8. If in his speech, Powell reiterates the commitment to curb inflation and emphasizes the need to raise interest rates for longer, it could affect the strength of gold, which could fall to the 1,812 area (2/8 Murray) and even reach the psychological level of 1,800.

On the contrary, if Powell's speech does not suggest further aggressive monetary tightening, it could give gold a strong boost and the metal could reach the 4/8 Murray zone located at 1,875 and finally, it could reach the psychological level of 1,900.

In the next few hours, gold is expected to remain above 1,843. A technical bounce around this zone could offer an opportunity to buy with targets at 1,850 and 1,863. If gold eventually falls towards the 200 EMA zone located at 1,838, it could be seen as an opportunity to buy on the bounce with targets at 1,850 and 1,863.