Early in the American session, gold is trading around 3,304, above the 6/8 Murray level, and within the uptrend channel formed on May 14.
Gold is expected to continue rising in the coming hours and could reach 3,325, the level where the gap was left on May 8. After this level is reached, the price could even climb to the 7/8 Murray level at 3,347 and finally the top of the uptrend channel around 3,380.
Gold could consolidate above the Murray 6/8 level at 3,281 in the coming hours. Therefore, this will be seen as a buying opportunity, as the main trend remains bullish and there is still some gap left to be filled. This suggests that the instrument could continue its rise in the coming days.
Our trading plan for the next few hours is to buy gold above 3,281, with targets at 3,326 and 3,359.
Conversely, a drop below the Murray 6/8 level could push the price down to the 21SMA at 3,244. This area serves as good support. So, a technical rebound is expected around this zone, as the bottom of the uptrend channel is located there.
