Early in the American session, Gold is trading around 2,025.87, above the 21 SMA, and above the 200 EMA. On the H4 chart, we can see that gold broke the downtrend channel forming since January 26 and now is consolidating above 1/8 Murray. XAU likely could continue to rise until reaching 3/8 Murray at 2,046 and could even reach 4/8 Murray at 2,062.
If gold consolidates above 2,023 (200 EMA) in the next few hours, the outlook could be positive and the metal could reach the strong resistance of 2,031 and could even face the weekly resistance of 2,036. Once both levels are surpassed, the price could accelerate its climb toward 2,046 and 2,062.
On the contrary, in case gold dips and trades below 2,023, it could reach the daily pivot point located around 2,015. This level coincides with 1/8 Murray and with the 21 SMA. It could set the stage for a technical bounce and could be seen as a signal to buy with the target at 2,062.
If gold falls below 2,011 (21 SMA) in the coming days and consolidates around this area, it is likely to resume its bearish cycle and then it could reach the psychological level of $2,000 and could even reach the support of 1,984.
The market sentiment report shows that there are 62.4% of traders who are buying gold. According to our strategy contrary to this statistic, if gold reaches levels of 2,036 or 2,045 and from that point, it could be seen as a signal to sell with a target at 1,984.