FX.co ★ Trading Signals for GOLD (XAU/USD) for October 31 to November 2, 2023: buy above $1,991 (8/8 Murray - 21 SMA)

Early in the American session, gold (XAUUSD) is trading around 1,991 within an uptrend channel formed since October 24 and above the 21 SMA. It is expected to continue rising in the coming as strong bullish momentum is observed. In case gold consolidates above 1,990, it could reach the psychological level of $2,000.

Gold prices broke above $2,000 on Friday, but we saw a correction to the bottom of the uptrend channel around 1,990. If gold prices consolidate above this area, there is upside potential that could push the price up to 2,005, 2,019 (top of the uptrend channel), and even +1/8 Murray at 2,031.

As long as gold trades above the 21 SMA (1,994), it could extend its rise. On the other hand, a sharp break of the bullish channel and a close below 1,988 on the H1 chart could mean a trend reversal and the instrument could reach the 200 EMA at 1,973 and even decline to 6/8 Murray at 1,937.

If gold continues to trade above the psychological $2,000 level in the coming hours, we should expect a range between 2,010 and 1,990. The eagle indicator is giving positive signals which could be seen as a buying opportunity at current price levels.