Gold is now trading around $4,437, rebounding after hitting the daily S_3 level around $4,404 and showing a slight recovery. It is likely to continue rising in the coming days to reach $4,522 and could even reach the upper band of the downtrend channel around $4,540.
After opening this week's trading with a gap, gold underwent a sharp technical correction below $4,578 starting at Tuesday's open, reaching a low of $4,404. Gold will likely recover some of its losses in the coming days.
Given that the Eagle indicator is showing a positive signal, we will look for opportunities to buy gold in the coming hours above $4,437 with targets at $4,522. A decisive break above $4,550 could even lead to a rapid rise to reach the 200 EMA around $4,630.
The outlook remains positive for gold. As long as the metal trades above $4,404, we will buy with targets at $4,554 and $4,630. The Eagle indicator is showing a positive signal, which supports our bullish strategy.
In an extreme scenario, the price could find strong support near the 6/8 Murray line, and this area could be considered a point for a technical rebound and a buying zone.
