FX.co ★ Trading Signals for GOLD (XAU/USD) on March 8-11, 2024: sell below $2,187 (6/8 Murray - technical correction)

Early in the American session, gold is trading around 2,166.96, above 5/8 Murray, and below 6/8 Murray with a bullish bias but showing signs of exhaustion.

Gold has just reached a high of 2,171.11 but could continue its rise in the coming hours. If the US NFP data disappoints, gold could continue its rise until reaching the strong resistance of 6/8 Murray located around 2,187.

Conversely, in case the US NFP data is favorable for the US dollar, we could see a strong technical correction in gold with the target at the key pivot point of 4/8 Murray around 2,125.

Technically, according to the daily and H4 charts, gold is strongly overbought which makes us think that a technical correction could follow in the coming days. So, we could expect the metal to reach the area of 3/8 of Murray located at 2,093 in the short term. The instrument could even approach the 21 SMA located at 2,053.

Our trading plan for the coming hours is to sell below 2,166 or wait for gold to make a pullback after the US NFPs towards the strong resistance at 2,187 to sell, with targets at 2,156 and 2,125.