FX.co ★ Trading signals for GOLD (XAU/USD) on March 9-10, 2023: buy above $1,812 (strong support - 2/8 Murray)

Early in the American session, Gold (XAU/USD) is trading around 1,819.26 above the 2/8 Murray and below the 21 SMA. After a sharp drop triggered by comments from the Fed Chairman, gold is now consolidating above the key support at 1,812.

In the next few hours, we could expect a rally towards the 21 SMA located at 1,828 which will be seen as a selling opportunity.

Fed Chairman Jerome Powell on Wednesday reiterated that interest rates would have to rise and possibly faster to curb rising inflation. This provided support to US Treasury yields. So, this is a factor that should keep gold under pressure.

If this trend continues, gold could fall to the key level of 1,803, which is where the 200 EMA is located on the daily chart, which has now become the last dynamic support.

According to the 4-hour chart, gold is respecting its uptrend channel formed since February 16. In case gold falls below 1,812 and consolidates below this level, it could quickly reach the psychological level of 1,800 and could even reach 1/8 Murray located at 1,781.

As long as the XAU/USD pair remains trading above 1,812 and within the uptrend channel, we could expect a rally towards 1,828. If this level is broken the instrument could reach the strong resistance of 1,843. This technical bounce in gold could be seen as an opportunity to resume selling. A daily close above the 200 EMA located at 1,846 could mean a change in trend, hence, we could expect gold to reach 1,875 (4/8 Murray) and the psychological level of 1,900.

In the meantime, any technical bounce towards 1,830 or 1,846 (3/8 Murray) will give us the opportunity to sell. Therefore, we could expect gold to reach the 1,828 zone in the next few hours to sell or we could buy at the current price levels above 1,812.

The eagle indicator is in an overbought zone. So, any attempt to recover in gold could be a sign that the instrument could extend its fall in the coming days.