Early in the American session, gold was trading around 2,625, above 21 SMA, and above 3/8 Murray. According to the H4 chart, we can see that gold is within an uptrend channel and it is likely that if it consolidates above 2,617 in the next few hours, it could reach 2,645 and even 2,656.
If gold consolidates above 2,620 or above 2,617 in the next few hours, the outlook will remain positive and will be seen as an opportunity to buy with targets at 2,645.
On the contrary, in case gold breaks the bullish trend channel and consolidates below 2,615, the outlook could be negative and we could expect the metal to reach the psychological level of $2,600. The instrument could even reach 2/8 of Murray at 2,578.
Let us remember that gold has left a gap at 2,562. In case gold falls below the psychological level of 2,600, it is likely to make a strong technical correction and may cover this gap and even reach 1/8 of Murray at 2,550.
The Eagle indicator is showing a bullish signal. So, the outlook will remain positive above 2,617 and we will look for opportunities to buy XAU/USD.
