FX.co ★ Trading Signals for GOLD (XAU/USD) for July 31 to August 03, 2024: buy above $2,410 (21 SMA - 7/8 Murray)

Early in the American session, gold is trading around 2,419, within the bullish trend channel forming since July 25, above the 21 SMA, and the 200 EMA, showing a bullish bias. We believe the metal could extend its rise in the coming days.

The Federal Reserve is due to make a policy statement in the next few hours. This high-impact event could generate strong volatility in gold. In case there is a pullback towards 2,437, it will be seen as an opportunity to sell.

On the other hand, if the Fed's rhetoric is bullish for the US dollar, we could expect a drop in the gold price towards the 2,400 area and it could even reach the 21 SMA around 2,393.

Since gold is trading around the top of the uptrend channel, a technical connection is likely to follow. Then, the price may resume its bullish cycle.

On the other hand, if gold continues its rise, there is a strong resistance around 7/8 of Murray. If gold reaches this area, it could be seen as an opportunity to sell below 2,437.

The eagle indicator is showing a positive signal. So, we believe that gold is going to trade higher in the coming days. The key for the XAU is to consolidate above 2,375. Then, any pullback will be seen as a buying opportunity.