Early in the European session, gold is trading around 2,944, below the 21 SMA, and below the high of 2,955 showing signs of exhaustion.
On the H1 chart, we can see that gold is showing signs of exhaustion after forming a triple-top pattern. A strong technical correction will likely occur in the next few hours and the instrument could reach 2,929 and even the 200 EMA around 2,920.
The key to watch for the gold price is consolidation below 2,945, where the 21 SMA is located, which acts as a dynamic resistance. Below this area, we could expect gold to reach 6/8 Murray at 2,890 in the short term.
If the gold price rebounds above 2,945, we can expect a continuation of the bullish movement and it could reach 8/8 Murray at 2,968.
If the gold price bounces around 2,930, we could expect it to return to the levels of 2,945 and 2,955. Once this zone is surpassed, the price could reach 8/8 Murray at 2,968.
A sharp break below $2,930 could turn the outlook strongly bearish and we could expect gold to continue losing value. Therefore, the metal could reach the psychological level of $2,800 in the short term.
