FX.co ★ Trading Signals for GOLD (XAU/USD) for December 7-8, 2023: buy if breaks $2,032 or sell below $2,025 (symmetrical triangle - 200 EMA)

Early in the European session, Gold (XAU/USD) is trading around 2,029.20 within a symmetrical triangle formed since December 5th. A strong break of this pattern will likely occur in the coming hours, which could be seen as a signal to buy if the price consolidates above 2,032.

Gold has been consolidating after the reversal from the all-time high of 2,144.46 to the low of 2,009.74. This technical correction could mean a resumption of the bearish cycle or we could expect a recovery in gold and it could reach 2,062.

The unemployment claims will be released later today and the Non-Farm Payrolls will be released on Friday. If the latter data is positive for the dollar, we could expect a sharp drop in gold followed by a technical rebound. On the other hand, if the data is negative for the dollar, we could expect a recovery in gold to 2,062 (5/8 Murray). The metal could even reach the 61.8% Fibonacci level around 2,090.

On the downside, a confirmation below the psychological level of $2,000 will change the overall uptrend and could increase the downward pressure towards $1,955 and ultimately to 1,937 (4/8 Murray).

Our trading plan for the next hours is to buy gold in case of a breakout above 2,032 and consolidation above the 200 EMA. On the other hand, in case of a sharp breakout and consolidation below 2,025, it will be seen as a signal to sell, with the target at 4/8 Murray located at $2,000.