Early in the American session, Gold is trading at 1,937.50, near the 7/8 Murray zone which represents a reversal point. Hours ago, at the start of the European session, XAU/USD reached a new high at around 1,942.34, seen for the last time since April 22.
The daily pivot point is located at 1,925. In case gold falls and rebounds around this zone, it could be a sign to resume the bullish cycle and the price could reach 1,949 and even the weekly resistance at 1,965.
If gold continues to rise, it could reach the high of March 20, 2022, around 1,950. Eventually, if the uptrend prevails, the price could reach the psychological level of $2,000.
Conversely, with a daily close below 1,925, we could expect gold to have a technical correction and the price could reach 6/8 Murray located at 1,874 (6/8 Murray).
The eagle indicator is moving away from the overbought zone, giving a negative signal. If gold makes a technical correction in the coming days, it could resume the bullish cycle when it reaches support levels.
In the case of consolidating above 1,937 (7/8 Murray), the yellow metal would be positioned to extend the rises in the coming days. Conversely, if gold consolidates below 1,925 levels, the bullish bias would lose strength.
The market sentiment report shows that there are 56% of traders who are buying gold. If this number increases, it could signal a technical correction towards support levels around 1,900 and even at 6/8 Murray at 1,875.
Our trading plan for the next few hours is to sell below 1,937, with targets at 1,925 and 1,910. The eagle indicator is showing an overbought signal on the 1-hour chart. So, a technical correction is likely to follow in the next few hours.
