Early in the European session, Gold (XAU/USD) is trading around 1,947.38, a key level below the 21 SMA and above the 7/8 Murray.
The US interest rate data will be published in the early hours of the American session. Investors believe that the federal funds rate of 5.25% will remain in place for the next few months.
According to the daily chart, we can see that since the beginning of May, gold has been forming a symmetrical triangle pattern.
Gold is likely to continue trading within this technical pattern until a sharp break of this pattern occurs. In the next few days, gold is expected to continue the consolidation. In case the price breaks any border of this symmetrical triangle in any direction, then we could expect a bullish or bearish movement.
If gold consolidates above 1,970, the uptrend is likely to resume until it reaches the psychological level of $2,000. The metal could even approach the high of 2,077.
Conversely, if the XAU/USD price falls below 1,937 (7/8 Murray), it could trigger a sell-off and the gold price could drop to the 200 EMA located at 1,975.
On March 10, 2023, gold left a gap at about 1,967 which is expected to be covered in the next few days provided that gold falls below 1,937 (7/8 Murray). If the downward pressure increases, gold could reach the bottom of the uptrend channel formed since December 2022 at around 1,850.
Our trading plan for the next few days is to buy gold above 1,940 with targets at 1,958 and 1966. As long as gold trades above 1,937, there is a chance that it will continue to bounce and gain strength until it reaches the psychological level of $2,000.
