Early in the American session, gold is trading around $3,309, rebounding after reaching the bottom of the downtrend channel formed on June 30, around $3,281. This area represents good support for gold. The metal is likely to continue rising in the coming hours, reaching the 21SMA at $3,316 and possibly even the 200EMA at 3,324.
A sharp break of the main downtrend channel and consolidation above $3,335 could favor a new bullish cycle for gold, which could reach the 6/8 Murray level at $3,359, the 7/8 Murray level at $3,398, and ultimately reach its high around $3,451.
Technically, gold is under bearish pressure, and this technical rebound could be seen as an opportunity to sell below $3,330.
If the gold price consolidates below $3,330 in the coming days, it will be seen as a selling signal, with a short-term target around the psychological level of $3,200, which coincides with the Murray 2/8 level.
The eagle indicator is giving a positive signal; however, gold could struggle to overcome the strong resistance of the downtrend channel around $3,324.
