Early in the American session, gold is trading around 1,957.73 around the 200 EMA located at 1958 and above the 21 SMA. The US data was disappointing that fueled a gold rally and it is likely to continue to rise until the price reaches the top of the downtrend channel around 1,967.
In the next few hours, gold is likely to continue its rise to reach 1,967. A sharp break of the downtrend channel and a close above 1,970 on the daily chart could be favorable for gold and it could reach the psychological level of $2,000.
On the other hand, in case gold fails to consolidate above 1,970, we could expect a technical correction to occur and the metal could reach the 1,955 zone which represents strong support.
In case gold falls below the 200 EMA and below 1,954, we could expect a bearish acceleration to reach the 21 SMA located at 1,946.
