Early in the American session, Gold (XAU/USD) is trading around 2,340, above the 200 EMA and 21 SMA bouncing after reaching 2,315 during the American session yesterday. US data could support bullish sentiment about gold.
On the other hand, if gold consolidates above 2,335 (200 EMA) in the next few hours, the outlook could be positive and we could expect it to reach the top of the downtrend channel around 2,348.
Gold has been under strong downward pressure for several days in a row and the eagle indicator shows a positive signal. Only a sharp break of the bearish channel could favor gold. The instrument is likely to continue rising to 2,375. If it fails to break the resistance of 2,348, we should expect another technical correction.
The data from the ADP survey on US employment came out negative for the US, which could favor gold. The odds are that in the next few hours, the metal will continue its rise as we see consolidation and positive sentiment.
The daily pivot point is located at 2,331. If gold consolidates above this area, a positive path remains for the coming days. The short-term target for the gold price is 2,375 (6/8 Murray). The instrument could even reach the psychological level of $2,400.
