FX.co ★ Trading Signals for GOLD (XAU/USD) for May 7-9, 2024: buy above $ 2,318 (200 EMA - 5/8 Murray)

Gold is trading around 2,314, below the 200 EMA, below the 21 SMA, and within an uptrend channel forming since May 3 with signs of exhaustion.

On the H1 chart, we can see that gold followed a bearish bias during the last negotiations. However, with a break and consolidation above 2,318, the metal could resume the bullish cycle and the price could reach 2,335 and finally the top of the bullish trend channel around 2,350.

The eagle indicator shows that gold is reaching overbought levels. So, we reckon if gold fails to break above 2,330, it could make a technical correction.

In case gold falls and consolidates below 2,312, the outlook could be negative and we could expect it to reach the support of 2,295, then 2,277 and finally, 4/8 of Murray located at 2,250.

The market sentiment report shows that there are 54.62% of traders who are buying gold. According to these statistics, we expect gold to reach resistance levels in the coming days and then sell with targets at 2,277 and 2,250.