Gold traded around $4,025, consolidating after hitting a low of $4,009 during Tuesday's US session and today's Asian session, which suggests it may be facing strong support and could resume its uptrend in the coming days.
A technical rebound above the psychological level of $4,000 could allow gold to reach $4,059 and might even push the price to the upper band of the downtrend channel around $4,070.
A decisive break above the 21 SMA, above the 6/8 Murray level, and above the downtrend channel could be a positive scenario for gold, and we could expect it to return to $4,133 and eventually reach the 3/8 Murray level around $4,218.
If bearish pressure prevails, we could expect gold to reach the strong resistance at $4,062 before resuming its downtrend.
In the event of a bearish move in gold—specifically, a drop below $4,000—we would expect it to reach the July 13 low of around $3,983 in the coming days; ultimately, we expect it to reach the lower band of the downtrend channel around $3,965.
