FX.co ★ Trading Signals for GOLD (XAU/USD) for October 16-18, 2023: sell below $1,932 or if pullback at $1,937 (6/8 Murray - overbought)

Early in the Asian session, Gold (XAU/USD) is trading around 1,925.73 below 6/8 Murray and above 21 SMA (1,903). Gold is showing signs of exhaustion. On the H-1 chart, we can see a bearish gap. It is likely to be covered in the next hour only if the bullish trend resumes.

Last week, gold rose with a strong bullish movement, having reached a high of 1,932. Now around this area, gold has left a GAP that is likely to be covered soon. Gold is likely to reach a strong resistance of 1,937 in the coming days (6/8 Murray).

After the attack launched by the Palestinian military operation on Israel, gold attracted buyers as a safe haven asset. This gave strength to the yellow metal and it appreciated by almost $100 dollars in a single week of trading, so this trend could carry on in the next few days.

If the attack between Palestine and Israel continues in the coming days, gold could continue to rise and it could reach 1,937, which could even overcome this barrier and reach 7/8 Murray at 1,968. From there, it could reach the psychological level of $2,000.

According to the technical analysis, a strong technical correction should happen in the next few days and from the current price point fall at least towards the key support of the psychological level of 1,900. This level could give the bulls the opportunity to resume buying and from there they can reach the psychological level of $2,000.

Our trading plan is to sell gold below 1,932. If a pullback occurs around 6/8 Murray (1,937), it will be seen as a sell signal, with the targets at 5/8 Murray at 1,906.