Early in the American session, gold was trading around 2,665, above 4/8 Murray, and above 200 EMA showing signs of exhaustion.
On the H4 chart, we can see that gold is in a strong bullish trend. After breaking the key level around 2,656, the outlook will remain positive and the metal could reach 5/8 Murray around 2,695 in the next few days.
In case gold falls below the 200 EMA located at 2,654, we could expect it to quickly reach 2,631 (21 SMA) and even 3/8 Murray around 2,617.
Technically, gold is overbought on the H1 chart. Thus, a strong technical correction is likely to occur in the next few hours. The price could reach 2,650 in the next few days. It could even reach the psychological level of $2,600.
The key to pay attention to is the 2,654 level. Below this area, the outlook could be negative for gold and will be seen as a signal to sell.
