Early in the American session, gold is trading around 2,376 above the 4/8 Murray, below the 21 SMA, and within the uptrend channel forming since July 2.
If gold trades within the uptrend channel in the next few hours, we could expect an upward movement for the next few days. So, the price could reach 2,390 and even the psychological level of 2,400 which coincides with 5/8 Murray.
On the other hand, if gold falls and consolidates below 2,375, the outlook could be negative and we could expect the instrument to reach the 200 EMA located around 2,378. Gold could even return towards 3/8 of Murray located at 2,343.
At the opening of negotiations this week, gold left a gap at about 2,390.11. Gold will likely return to these levels in the coming days. For this, we will look for opportunities to buy only if the metal trades above 4/8 Murray.
The H1 chart shows that the eagle indicator has reached the overbought zone. Since then, it has been giving a bearish signal. Therefore, in case gold fails to consolidate above 2,381 (21 SMA), we will continue looking for opportunities to sell.