After reaching a high of around $4,600, gold has been undergoing a technical correction for several consecutive sessions, reaching the 50% Fibonacci retracement level around $4,350.
Gold is currently recovering after consolidating above the 6/8 Murray level at $4,375. Gold could continue its rise in the coming hours until it reaches the 23.6% level around $4,480.
A decisive break of the downtrend channel and consolidation above the 21 SMA could be seen as a positive signal for gold, and we could expect it to reach the top of the downtrend channel around $4,670 and ultimately reach the 7/8 Murray level at $4,687.
If, in the coming hours, gold encounters strong resistance around the 23.6% Fibonacci level and near the top of the downtrend channel, this could be seen as a signal to sell below $4,490 with targets at the 61.8% retracement level around $4,300.
The Eagle indicator is showing a positive signal, so we will look for buying opportunities whenever the gold price consolidates above the 6/8 Murray level or in case of a break above the 21 SMA, with targets in the coming days around the 200 EMA at $4,866.
