Gold is trading around $4,495 following a sharp upward move that began after hitting a low of $4,330—a level that coincided with the lower band of the uptrend channel. The chart shows a sharp rise of more than $200 in less than 24 hours.
Technically, gold may be showing signs of exhaustion following the rapid rise, and given that the Murray 6/8 resistance level is around $4,531, we could look for selling opportunities if the price attempts to break through that zone but fails and consolidates below it.
Since gold is in a zone of strong resistance and as long as the price trades below $4,531, our outlook could remain bearish, with targets at the Murray 5/8 level, around $4,453. Ultimately, we expect it to find strong support around the 21 SMA level at approximately $4,406.
Gold could consolidate around the psychological level of $4,500 over the next few days, as it is expected to find strong support at $4,453 and potentially rebound until prices stabilize again, fluctuating between $4,453 and $4,531. Therefore, we will look for buying and selling opportunities within this projected range.
Our outlook for the next few hours is to sell gold below $4,531. We could set a stop-loss above $4,550, and our short-term targets could be $4,453 and $4,406.
