Early in the American session, Gold is trading around 2,473.66 above the 7/8 Murray and showing signs of exhaustion after having reached a new record high at about 2,481.55.
Gold has enough bullish momentum to continue rising and reach the psychological level of 2,500, an area that coincides with 8/8 Murray. However, from the technical viewpoint, we have detected an overbought signal. Thus, we believe that gold could make a technical correction in the coming days if the price consolidates below 2,468.
On the other hand, if the precious metal continues to rise, it could try to surpass its all-time high. Should it fail to consolidate above 2,381, it could be seen as a double-top pattern that could enable a technical correction below this area.
According to the eagle indicator, gold is extremely overbought. Therefore, we believe that below 2,481, a strong technical correction could occur with downward targets at 7/8 Murray located at 2,468 and 2,455.
Given that gold technically maintains a strong bullish bias, a technical rebound above 2,450 or 2,437 could revive the bullish cycle. The netal is likely to reach the psychological level of 2,500 in the short term.