Early in the American session, gold is trading around 2414.91 facing the 200 EMA which acts as a strong barrier and showing signs of exhaustion after the rebound from the low of 2,360.
Yesterday, due to fears of a recession in the United States, the stock markets fell sharply. In turn, this also affected cryptocurrencies and especially gold which tumbled by more than $90 in one day.
Technically, gold is in a strong resistance zone around 200 EMA. We believe that if the metal fails to break 2,417, we could expect a technical correction and it could reach 5/8 Murray at 2406 and even the psychological level of 2,400.
If gold consolidates below 2,406, the outlook could remain negative and it could reach 2,390 and finally, 4/8 at 2,375.
Looking at the H4 chart, we can see that gold is already oversold. It is likely that after a technical correction, a strong rebound could occur and gold could rebound towards 6/8 Murray at 2,437 and could even return towards 7/8 Murray at 2,468.
