FX.co ★ Trading Signals for GOLD (XAU/USD) on March 5-9, 2024: sell if pulls back at 2,140 (+1/8 Murray - overbought)

Gold is trading around 2,123 with a strongly bullish bias and a little opportunity for a technical correction. According to the H4 chart, gold is facing strong resistance around +1/8 Murray at 2,140. This level could offer an opportunity for a technical correction and below 2,140, so we could look for opportunities to sell.

If gold reaches this +1/8 Murray resistance zone in the next few hours, we could sell with targets at 2,125, 2,109 and finally, at the 21 SMA around 2,080.

Gold is technically strongly overbought. Hence, a technical correction is imminent in the coming days, so we should expect the XAU to trade below 2,140. This area could prove a barrier for gold and could find strong rejection. This will be seen as an opportunity to sell.

On the contrary, in case there is a decline below 2,125, around the current price levels, we could expect the price to reach 2,109 and 2,093.

This week, crucial data on the US labor market will be released. The NFPs could give an opportunity for the bulls in case the US data is negative. Then, we could expect gold to continue rising and the price could even surpass its high of 2,144 and reach the +2/8 Murray level located at 2,250.

On the other hand, if the US Non-Farm Payrolls data is positive, we could expect gold to return to 2,080. The metal could even reach the 200 EMA at 2,036.

Our trading plan is to sell gold only in case it trades below 2,140 with targets at 2,093 and 2,078. The eagle indicator is strongly overbought. Therefore, a technical correction is likely to occur in the coming hours.