Early in the American session, gold is trading around 3,295, rebounding after reaching the low of 3,285. Gold is weakening following Trump's announcement of the tariff extension.
According to the H4 chart, gold rebounded after reaching the bottom of the downtrend channel above the 4/8 Murray level. We believe there could be a slight recovery for the yellow metal in the coming days, reaching the 200 EMA located at 3,327 or even reaching the top of the main downtrend channel around 3,335.
If a break below 3,281 occurs, we could expect a bearish acceleration, and gold could reach the 3/8 Murray level at 3,242 and ultimately reach the bottom of the main downtrend channel around the psychological level of $3,200.
On the other hand, a consolidation above 3,340 could signal a change in the bearish outlook, and gold could reach 7/8 Murray at 3,398 and eventually reach its June high around 3,443.
The key is to watch for the gold price to consolidate above 4/8 Murray, then we could expect a technical rebound in the coming days. Conversely, below this area, the outlook for gold will be bearish.
