Early in the European session, gold is trading around 3,353, reaching a strong resistance zone located around the 6/8 Murray level at 3,359.
Gold may struggle to break above 3,360, as this zone provides strong resistance. If gold fails to consolidate above this zone, we could expect a technical correction toward the 5/8 Murray level, located around 3,320.
The outlook for gold remains bearish, as there is strong pressure below 3,370-3,380, a strong price zone that gold has unsuccessfully attempted to break over the past week.
The Eagle indicator is showing overbought signs, so a technical correction is imminent in the coming days. Therefore, we must pay attention to the 6/8 Murray level. Below this zone, we will look for opportunities to sell gold.
Gold is expected to fall towards 3,320 in the coming days, and a potential break below this area could accelerate gold's decline towards the 4/8 Murray level at 3,281.
Conversely, if gold consolidates above 3,360, we expect it to reach 3,398 and could even reach the psychological level of $3,500 in the short term.
