Early in the European session, gold is trading around 2,030.08, above the 21 SMA, and above the 200 EMA. On the H4 chart, we can see that gold is consolidating above 2,030. If the price settles continues above this area, it could likely reach 2,044 and even 5/8 Murray at 2,062 in the next few days.
On the H4 chart, we can see that gold is trading within a bullish pennant pattern. Therefore, if there is a break above 2,037, we could expect the metal to reach 5/8 Murray at 2062.
On the other hand, in case gold consolidates below 2,030, we could expect the fall to continue towards the 200 EMA located at 2,003. We could also expect a consolidation around the psychological level of $2,000.
The market sentiment report shows that there are 64.21% of traders who are buying gold. According to our contrarian strategy, we expect that gold could continue to fall in the coming days and could reach the psychological level of $2,000 and could even go as low as 3/8 Murray at 1,937.