FX.co ★ Trading Signals for GOLD (XAU/USD) for November 23-24: sell if breaks $1,990 (8/8 Murray - 21 SMA)

Early in the American session, gold (XAU/USD) is trading around 1,993.14, above the 21 SMA and below the 8/8 Murray, an area which coincides with the psychological level of $2,000. In the last few days, gold has been showing some consolidation below 2,007.

On a fundamental level, the FED released its minutes, where the policymakers reiterated the stance to keep the interest rate high for longer and remain committed to further tightening monetary policy unless inflation reaches the 2% target.

Investors could react to this fact and gold could lose strength. Therefore, we could see gold trading back to the 1,937 level and it could even reach the 1,865 level.

In case gold breaks and consolidates above 1,998 in the next few hours, we could expect it to continue rising and the instrument could reach +1/8 Murray located at 2,031.

On the other hand, a sharp break of the uptrend channel formed since November 13 could accelerate the downward movement and the metal could reach 7/8 Murray located at 1,968 and could even reach the 200 EMA located at 1,958.

As long as gold consolidates above 1,990, there is a possibility of a bullish continuation. As long as it trades within the uptrend channel, gold could gain momentum and could reach the 2,031 level.