Gold is trading around 2,515, retreating after having reached its high of around 2,529. We could expect that gold in the next few hours will continue its fall and could reach 2,500 and even reach 2,460 only if the precious metal's price consolidates below the 21 SMA.
During the last few sessions since August 19th, we have observed that gold is consolidating between 2,531 and 2,500, showing an exhaustion of bullish strength. Due to this fact, a technical correction is likely to occur if the XAU price breaks below the bullish trend channel formed on the H4 charts.
On the H4 chart, we can see the formation of a symmetrical triangle pattern, which is likely if gold bounces within this pattern and breaks above 2,530. The outlook could be bullish and gold could reach 2,539 and even +2/8 Murray around 2,578.
On the other hand, with a sharp break of the symmetrical triangle and a consolidation below 2,508, the outlook could be negative. Gold could reach 2,460 and finally, the 200 EMA located at 2,446.
The Eagle indicator is showing negative signals. So we will look for opportunities to sell below 2,510.
