Early in the American session, gold was trading around 2,933, around the 21 SMA within the bullish trend channel forming since the beginning of February.
After having made a technical correction and reaching its high around 2,954, gold is now showing signs of a further bullish movement. We believe that if the metal consolidates above 2,933 in the next few hours, we could expect it to continue rising until it reaches the 6/8 Murray located at 2,968.
The outlook could be negative below 2,930 (21 SMA) and a sharp break below the bullish trend channel could indicate a strong technical correction. If this scenario occurs, we could expect gold to fall towards 2,890. The price could even eventually fall towards the 200 EMA located at 2,845.
On daily and weekly charts, gold is showing exhaustion and overbought signs. So, we believe that any technical bounce will be seen as a signal to sell below 6/8 of Murray.
