Early in the American session, Gold (XAU/USD) is trading at 1,882.64, above the 4/8 Murray and above the 21 SMA and 200 EMA.
If gold continues to consolidate above this level (1,875), it could be a signal that in the next few hours, the instrument could reach the psychological level of 1,900 and even 5/8 Murray at 1,907.
Federal Reserve Chairman Jerome Powell said on Tuesday that the central bank would pursue the same course despite strong economic data released last week. In addition, he said that interest rates would remain higher for longer than expected.
This comment from Jerome Powell could put pressure on gold and the metal could reach 1,812 or it could fall to the 1/8 Murray level at 1,781.
On the other hand, in case there is a sharp break below 4/8 Murray, we could expect a resumption of the bullish cycle and the price could fall towards 1,849 and could even reach 1,817. A break of the uptrend channel could mean a change in the trend in the short term.
The psychological level of 1,900 could offer a strong resistance for gold since previous occasions when it had become a strong support. In case gold reaches this zone in the next few days, it could be seen as an opportunity to sell.
