FX.co ★ Trading Signal for GOLD (XAU/USD) for June 28-29, 2023: buy above $1,921 (21 SMA - double bottom)

Early in the European session, Gold (XAU/USD) is trading around 1,915.66 below the 21 SMA and below the 7/8 Murray. We can see on the 4-hour chart that gold has bounced around the 1,910 support, forming a double bottom pattern, which could be seen as a sign of a recovery for the next few days.

In case gold consolidates above 1,921 (21 SMA) in the next few hours, we could expect an advance in gold and the price could reach 1,937 (7/8 Murray) and 1,951 (200 EMA).

On the other hand, if gold fails to break this resistance level at 1,920, we could expect it to continue its bearish cycle and it could reach the psychological level of 1,900.

Yesterday the data from the United States published in the American session were favorable for the USDX (dollar index) and for bonds. As a result, investors stopped buying gold and it fell sharply. Now we expect a recovery in the next few hours and a consolidation above 1,910.

The Eagle indicator is approaching extremely oversold levels which could be seen as an opportunity to buy in the next few hours only if XAU/USD consolidates above 1,921.

In the chart, we can see that gold broke the symmetrical triangle formed since June 23, which generated a sharp drop in gold. For now, we see another double bottom pattern which could help gold recover and the metal could reach the signal around 1,942 (top of the bearish channel).

Our trading plan for the next few hours is to buy gold above 1,921 (21 SMA), with targets at 1,937 and 1,942. In case gold falls around the psychological level of 1,900 and if it bounces in that area, it could be seen as an opportunity to buy.