Early in the session American gold (XAU/USD) is trading around 1932.02 below the 4/8 Murray and above the 21 SMA located at 1,924.
On the daily chart, we can see that gold has a bullish bias as it is located above the 200 EMA above 3/8 Murray. A technical correction towards the area of 1,920 (3/8 Murray) could offer an opportunity for bulls to resume buying and this could reach 1,953.
The price of gold on daily charts is forming a Doji which means indecision. This is because investors are awaiting the Federal Reserve's monetary policy decision, which will be announced in the coming hours.
This consolidation could offer bullish direction if the Fed Chairman's statements are weak. In case the president says that the increase in the US interest rate will continue in the near future, gold could fall below 1921 and approach the 200 EMA located at 1,910.
The 4/8 Murray line located in 1,937 could offer strong resistance. In case gold tries to break and fails, we could expect a technical correction towards support levels of 1,924 and 1,921.
On the other hand, a daily close above 1,937 (4/8 Murray) could favor bullish momentum and gold would have a free way to reach 1,953 and even if it surpasses this level, it could approach the July high around 1,980.
Our trading plan for the next few hours is to buy gold around 1,921 after the interest rate data is released. We must wait for this decision to make a correct decision in case there is a buying or selling opportunity.
