Gold is trading around 2,045.91, below 3/8 Murray, above the 21 SMA, and above the 200 EMA. Yesterday gold managed to bounce from the bottom of the uptrend channel forming since February 14 and reached a weekly high of around 2,050.
Currently, we see a technical correction in gold. The correction is likely to continue in the coming hours. If the metal consolidates below 3/8 Murray, it could reach the 21 SMA located at 2,035, or around the bottom of the uptrend channel at 2,032. A technical rebound may follow and the price could reach 4/8 Murray at 2,062.
Only on the condition of a sharp break of the uptrend channel and a consolidation below 2,031 and 2,026, we could expect a bearish acceleration to occur. So, the price could reach 2,015, $2,000 and finally 1,984.
The outlook could remain positive for gold only if it consolidates above 2,032, then any technical bounce will be seen as a signal to buy with the target at 2,062.
On the contrary, our outlook could change below 2,031 and become negative. In the short term, gold could fall towards the psychological level of $2,000. Since February 22, the eagle indicator has been in an overbought zone which favors a decline in the coming days.
