Gold is trading around $4,715, above the 7/8 Murray line, and has been consolidating above this level since May 6, which gives us a positive outlook for the coming days if the price consolidates above the 200 EMA around $4,709.
During Friday's US session, key US employment data will be released. This could impact gold's current slight consolidation, and we could see a strong upward move toward the $4,823 zone—where strong weekly resistance is located—or a sharp decline toward the 21 SMA around $4,654.
According to the H4 chart, gold is within an uptrend channel, and we could look for buying opportunities in the coming hours if the price consolidates above $4,700. In that case, our target could be this week's high around $4,765, and ultimately, we could expect it to reach $4,823.
We must monitor the $4,709 area. If the price falls below this level and consolidates below the 7/8 Murray line around $4,687, a sharp technical reversal could occur, and gold could reach the 21 SMA around $4,654 and even retreat toward the $4,500 level.
The Eagle indicator has reached overbought levels, so we should exercise caution. If an upward move occurs in the coming hours and gold reaches strong resistance levels, we could consider opening short positions, as a sharp technical correction may take place.
