Gold is trading around 2,598, retreating after having reached 3/8 Murray (2,617) in the early American session.
Gold has been trading within the bearish trend channel forming since October 31st. The instrument might continue its fall in the next few hours until it reaches 2/8 Murray located at 2,578.
If gold consolidates above 2,590, we could see this as an opportunity to buy with the target around 4/8 Murray located at 2,650. On the other hand, in case the metal falls towards 2,578, we could expect a technical bounce to occur as gold is extremely oversold.
Besides, in case of consolidation above 2,620 on the H4 chart, we could see gold reach the top of the downtrend channel around 2,645.
