Early in the American session, Gold (XAU/USD) is trading at 2,514.14 above the 21 SMA and within the uptrend channel forming since September 2. Hence, we are watching an uptrend.
Yesterday gold made a technical bounce above the psychological level of 2,500. It is expected to continue its rise in the next few hours. In case there is a sharp break above 2,517 where a bearish line is located, the metal will maintain a bullish movement.
In case gold breaks this Pennant pattern and consolidates above 2,517, the outlook could be positive for gold and we could expect the price to reach 2,531 (+1/8 Murray) and eventually, the 2,545 area.
On the other hand, a fall and a break of the uptrend channel and if the price falls below 2,510, the outlook could be revised downward. Therefore, we could expect gold to drop to 2,500. Eventually, it could decline towards the 200 EMA located at 2,477.
The Eagle indicator is showing a positive signal, so we will look to buy as long as the gold price remains above 2,510.
