02.05.202306:29 Forex Analysis & Reviews: Trading Signal for GOLD (XAU/USD) for May 2-3, 2023: buy above $1,985 or if rebound at $1,972 (range - 21 SMA)

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Early in the European session, Gold (XAU/USD) is trading at 1,984.87 around the 21 SMA and below the 200 EMA. We can see on the 1-hour chart that gold has left a gap around 1,997.

Yesterday, gold managed to bounce from the low of 1,977 towards the resistance of 2,006 which was seen as a positive move for the bulls. After a few hours, gold fell sharply due to the rebound in the US dollar after the publication of upbeat data from the US (PMI).

Currently, the XAU/USD pair is bouncing above the strong support of 1,980 and could continue to bounce if it consolidates above 1,985 (21 SMA) to reach the psychological level of 2,000.

On the chart, we can see that gold has been trading within a range from 1,970 to 2,009. Given that gold left a gap, it is likely that any technical bounce could be seen as a signal to buy on the condition it consolidates above 7/8 Murray located at 1,968.75.

The critical support level is 1,968 (7/8 Murray). A daily close below this level and a sharp break could encourage the bearish move and gold could reach 6/8 Murray located at 1,937 and ultimately the psychological level of 1,900.

This week, important data will be unveiled in the fundamental calendar for which we must be very careful. In the next few days, it is likely that we will see a strong movement in gold towards 2,009 or it could reach the zone of 2,023 that coincides with a gap left last month.

Our trading plan for the next few hours is to buy above 1,985 (21 SMA) or wait for a technical bounce from 1,972 to buy with targets at 1,991 (200 EMA) and 2,023.

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