Early in the American session, gold is trading around 5/8 of Murray at 2,693 within the uptrend channel forming since December 4 and above the 21 SMA and the 200 EMA.
On the H4 chart, we can see that during the European session yesterday, gold made a strong technical correction from 2,704 to 2,676. Since then, we see that it has recovered part of the losses. A further drop is likely to occur due to the US inflation data to be released in the next few hours.
In case a pullback occurs at 2,710 where the first daily resistance is located, it will be seen as an opportunity to sell gold, with targets at 2,695 and 2,676.
On the other hand, in case the price falls below 5/8 of Murray, the technical correction is likely to resume and the metal could reach 2,655.
A break below 61.8% could accelerate the fall of gold. Thus, we expect the instrument to reach 2,578 in the medium term.
Above 2,710 we see no obstacles. If gold wants to continue rising above this area, it is likely to reach 6/8 of Murray at 2,734. Our bearish strategy will be invalidated as long as gold consolidates above 2,710.
The material has been provided by InstaForex Company - www.instaforex.com
