Early in the American session, gold (XAU/USD) is trading around 2,649, near the 21 SMA area, and below the downtrend channel forming on the H4 chart since September 24. So, we notice that gold maintains bullish momentum.
Gold is also trading within the bullish trend channel forming since September 10 and is likely to continue its upward movement in the coming days if the price consolidates above 2,650.
Gold left a gap at about 2,663.39, opening on Monday. Pn the 5M chart, we see that gold has not covered this gap. Therefore, the metal is likely to have a strong bullish move in the coming days. The price could break 2,670 and could even reach 3/8 Murray at 2,734.
On the other hand, a consolidation below 2,640 on H4 chart and a break below the low of 2,625 could change the outlook for gold and it could reach the psychological level of 2,600. Finally, if the price breaks the bottom of the downtrend channel, it could reach the 200 EMA around 2,570.
