FX.co ★ Trading Signals for GOLD (XAU/USD) for May 30-31, 2024: buy above $2,345 (oversold - 200 EMA)

Early in the American session, Gold is trading at 2,338, around the 200 EMA, and within the downtrend channel forming since May 16. We believe that gold could sharply break above the downtrend channel in the next few hours. If this scenario comes true, we could expect there to be an upward movement which could be seen as a signal to buy with targets at 2,363 and 2,395.

On the other hand, in case gold falls below 2,336 and consolidates below this level, it will be seen as a continuation of the bearish move and the price could reach the low of early May around 2,308.

On the technical H4 chart, we can see a double bottom formation, which means that there could be a technical rebound in the next few days. It could even mean a trend reversal and gold could reach the psychological level of 2,400.

If gold breaks above 2,345 in the next few hours and consolidates above this area, traders will have an opportunity to buy. The eagle indicator is showing that the instrument is extremely oversold. So, a technical rebound is likely to occur in the coming days.