FX.co ★ Trading Signals for GOLD for May 3-5, 2024: sell below $2,320 or below $2,300 (21 SMA - 200 EMA)

Gold is trading around 2,302.57, pulling back after reaching the high of 2320 during the American session. This area represents the 200 EMA and turned out to be a strong top for gold. Since then, a technical correction ha been underway.

In the coming hours, gold could continue its fall if it consolidates below the 21 SMA or around the psychological level of 2,300. Below this area, the yellow metal could reach the bottom of the symmetrical triangle pattern around 2,293.

A sharp break below the symmetrical triangle channel and below 2,292 could accelerate the bearish movement and the price could reach 2,275 and 2,250.

The eagle indicator is giving overbought signals. For this reason, we believe that a technical correction could occur in the next few hours which will be seen as an opportunity to sell.

If gold returns to the 5/8 Murray located at 2,213 or the 200 EMA located at 2,320 and fails to consolidate above this zone, it could be seen as a signal to sell with targets at 2,300 and 2,250.