Early in the European session, gold (XAU/USD) is trading around 1,983.43 below the 21 SMA and within the symmetrical triangle formed since April 18.
The main event this week will be the US interest rate announcement. This could be the trigger to move gold to 2,031 (+1/8 Murray) or it could drop to 6/8 Murray at 1,937.
If in his speech Powell says that the Fed will pause its rate hike cycle to reassess the economic situation, the immediate reaction is likely to weigh on US yields and could help XAU/USD to rise to 2,062 (+2/8 Murray).
From the technical point of view, we can observe downward pressure. It is expected that in the next few hours gold can reach the support zone around 1,979. In case of breaking the symmetrical triangle, it could reach the 200 EMA located at 1,970 and finally it could fall to price levels of March 30 around 1,949.
On the other hand, in the event that gold returns above 1,995 (21 SMA), we could expect it to resume the bullish cycle, but it should sharply break through the symmetrical triangle and consolidate above 2,005. In case that this scenario occurs, it is expected that the gold can reach 2,023 where it has left a gap on April 14 and finally it could reach +1/8 Murray located at 2,031.
Since April 21, the eagle indicator has been showing a negative signal and it is likely that in the next few hours, gold could fall towards the support level of 1,950 .
For the next few hours, gold is expected to trade in the range of 1,993 to 1,975 within the symmetrical triangle. On the other hand, we could expect another price range above 1,995 to 2,005.
