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31.01.202304:29 Forex Analysis & Reviews: Trading Signal for GOLD (XAU/USD) for January 31, 2023: buy above $1,920 (21 SMA - range)

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XAU/USD is trading within a range of 1,915 - 1,935. This consolidation is due to investors awaiting data regarding the Fed's monetary policy meeting and US Nonfarm Payrolls.

The US Federal Reserve, the European Central Bank, and the Bank of England will announce their decisions on monetary policy between Wednesday and Thursday. This could trigger strong volatility in the market and gold could move out of range.

In the next few hours, gold is expected to continue trading within the range of 1,915 towards the 21 SMA located at 1,930. A sharp break above 1,931 could mean an acceleration to the upside and the price could reach 1,949 and even the psychological level of $2,000.

On the contrary, in case gold falls and consolidates below 1,915, it will be a clear signal to sell, with targets at the psychological level of 1,900. The metal could even reach 6/8 of Murray at 1,875.

Our trading plan is to buy above 1,920, with targets at 1,930 or to wait for any of the out-of-range areas to give us the signal to buy or sell. The eagle indicator reached the extremely oversold zone. It is likely that in the next few hours, gold will rebound and could reach 1,930 and even up to the Murray 7/8 at 1,937.

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