Gold is trading around 3,313 under strong bearish pressure, showing exhaustion and the possibility of a technical rebound in the coming hours.
This week, the XAU/USD peaked around 3,358, and since then, we have seen a strong technical correction in gold, reaching support levels around 3,312.
If the bearish pressure continues in the coming hours, we could sell below 3,320 with targets at the psychological level of 3,300 around 1/8 Murray. We ultimately expect gold to reach the price levels of early August around 3,281.
The short-term outlook for gold remains bearish, as hopes for a resolution to the Europe-Russia conflict increase, and demand for gold as a safe-haven asset declines.
We could expect a recovery in gold if it sharply breaks the bearish trend channel formed on August 6 and consolidates above the 3/8 Murray level at $3,339. We could then expect it to reach the $3,375 level, and even $3,402.
Key resistances are located around $3,308, $3,300, and finally at the 8/8 Murray level around $3,281.
Immediate resistance is located at $3,320, $3,335, $3,339, $3,347, and finally the 4/8 Murray level at $3,359.
