Early in the European session, Gold (XAU/USD) is trading around 2,036.18 within a diamond pattern. So, we could expect to see a breakout on either side to confirm the next move.
The market sentiment report shows that there are 61.35% of traders who are buying gold. According to our contrarian strategy, it is likely that gold will encounter strong resistance around 2,040 or 2,062 which could be seen as a signal to sell with targets at 2,015 and at the psychological level of $2,000.
Because gold is showing signs of exhaustion, we expect a technical correction to occur in the next few hours towards the daily support zone located at 2,015, which could allow us to resume buying. We expect the price to reach 5/8 Murray at 2,062.
On the other hand, if gold breaks sharply and consolidates above 2,037, we could expect it to continue rising and the price could reach 2,048 and even the 2,062 level.