Gold is trading around $4,460, rebounding after reaching a key support zone that coincided with the daily support level around $4,430.
Gold is trading above the 61.8% Fibonacci retracement level, suggesting that a recovery could occur in the coming days if the price consolidates above $4,460.
The outlook for gold is positive, but for this to happen, XAU/USD must overcome the strong resistance at $4,489, where the 21-day SMA is located. If XAU continues to rise in the coming hours and consolidates above $4,490, this could be seen as a positive signal to buy, with targets at the 61.8% Fibonacci extension level around $4,564.
If the upward momentum prevails, we could expect gold to reach the 200 EMA around $4,590. If it breaks above this level, it will ultimately reach the 100% Fibonacci extension around $4,654.
A drop and consolidation below the 61.8% Fibonacci level could signal a negative outlook for gold. So, we could expect it to reach the 6/8 Murray level around $4,375 in the coming days.
Our trading plan for the coming hours is to buy at the current price level of $4,460, and we could place a stop-loss below yesterday's low around $4,430.
