Gold is trading above the 21 SMA with a bullish bias. The technical bounce has extended from the low of 1,742 and yesterday it reached the 1,781 zone of resistance which coincides with the 5/8 of Murray. In two days, XAU/USD has recovered by almost 40 dollars.

This rebound in gold is due to an increase in the yields of Treasury bonds and the correction that the US dollar index is making below 7/8 of Murray. The trend continues to be bullish for the US dollar, so this rebound in gold will only be an opportunity to sell.

Investors have their eyes on the data to be released tomorrow by the central bank. New economic projections are expected, and some market participants still believe that the Fed will give clues about reducing its bond purchase plan.

If the central bank decides to start cutting its stimulus program before the end of the year, gold could fall to the 1,700 level and could be under downward pressure for a long period.

The 4-hour chart shows that gold is trading below the 200 EMA and below the downtrend channel. It is likely that in the next few hours there will be a good opportunity to sell if the price rises and touches the top of the downtrend channel around 1,785.

In the short term, as long as it remains above the pivot point of 4/8 Murray and above the 21 SMA, gold is expected to continue rising but will be capped until the 200 EMA located at 1,790. A break and consolidation above 1,795 will be the start of a new bullish sequence.

Our outlook is bearish for gold as long as it remains below 1,790. We believe that gold could resume the fall to the level of 1,750 and the break below 4/8 of Murray could push the price to the support of 1,718, 3/8 of Murray.

The eagle indicator is showing bullish signal, but if you look at the chart, the moving average is limited because it is oscillating below the bearish channel. If it fails to break through this channel, it could be just a correction and gold could fall again in the next few days. For this, gold should trade below 1,790.

Support and Resistance Levels for September 22 - 23, 2021

Resistance (3) 1,794

Resistance (2) 1,790

Resistance (1) 1,784

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Support (1) 1,769

Support (2) 1,760

Support (3) 1,750

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Trading tip for GOLD for September 22 - 23, 2021

Sell below 1,785 (EMA 200), with take profit at 1,775 and 1,760 (SMA 21), stop loss above 1,793.

Buy if gold rebounds at 1,762, with take profit at 1,775 and 1,785 (top bearish channel), stop loss below 1,755.