Early in the American session, gold traded around 2,497, below the 200 EMA, below the 21 SMA, and below the 8/8 Murray. During the European session, we observed a fall towards the 2,483 area. From this level, we are watching a recovery of gold which is likely to continue its rise in the next hours. For this, we should wait for consolidation above 2,503.
If gold consolidates above 2,503 in the next few hours and continues trading within the bullish trend channel, we could expect it to reach the target of around 2,528. This area represents a strong resistance zone that gold has been testing since August 19th. If the bullish force prevails, we could expect the price to reach 2,539 and, finally, 2,573.
On the other hand, if gold fails to consolidate above 2,503, we could expect a resumption of the bearish cycle. So, the metal could reach 2,489. If the gold price trades below 2,485, it could mean a change in trend and a break of the uptrend channel. Then, the instrument could drop to about the 200 EMA located at 2,471.
