Early in the American session, Gold is trading around 2,359 within the uptrend channel forming since June 26 with bullish potential. So, the metal could continue its rise if it consolidates above 2,360.
Gold is defending its uptrend channel and we believe that if it consolidates above the 21 SMA at 2,367 in the coming days, the outlook could remain positive and the price could reach 4/8 Murray at 2,375.
Above 2,375, gold could easily cover the GAP that it left at 2,391. The instrument could even reach the psychological level of 2,400, which coincides with 5/8 Murray.
Since the eagle indicator shows an overbought signal, we believe that gold will have a technical bounce. While trading below 4/8 Murray, any technical bounce will be seen as an opportunity to sell.
Besides, a sharp break below the uptrend channel and a consolidation below 2,360 could change the outlook for gold and its price could reach 2,350, 3/8 Murray at 2,343, and even the 200 EMA at 2,337.
