Gold is trading around 2,050.40, above the 21 SMA, and below 5/8 Murray. Gold opened trading with a small gap around 2,045. We can see that it is moving inside a secondary bullish channel formed since December 14.
Gold could face strong resistance around the top of the uptrend channel at 2,057 and could even encounter strong resistance around the 5/8 Murray at 2,062.
If gold falls in the next few hours and bounces around the pivot point at 2,046, it could also cover the gap left around 2,045. Then, we could expect a bullish move with the target at 2,062.
If gold reaches resistance levels below 2,062, it will be seen as an opportunity to sell with targets at 2,037 and the psychological level of $2,000.
Additionally, a sharp break of the uptrend channel and a close below the 21 SMA at 2,037 on the 4-hour chart will be a signal to sell with the target at the 200 EMA at 2,006. The metal could even fall towards the bottom of the uptrend channel formed since early December around 1,985.
According to the eagle indicator, gold is reaching overbought levels. If it consolidates below 20,62, we could expect a technical correction in the coming days.
The market sentiment report shows that there are 62.65% of traders who are buying gold. This statistic signals that the price could drop in the next few days towards the psychological level of $2,000.
