Early in the American session, gold is trading around 2,398 above the 200 EMA and above the downtrend channel that was broken in the European session. Gold maintains bullish momentum and could reach the 21 SMA around 2,416 in the next few days.
Having printed a low of 2,360, gold has recouped part of its losses and is now starting a new bullish sequence. As long as the yellow metal trades above 2,381, there is a possibility of a further rise. So, the instrument could reach 6/8 Murray at 2,437 in the short term.
In case gold falls and breaks the bullish trend channel forming since August 5 and consolidates below 2,380, the outlook could be negative and gold could resume its bearish cycle and could reach 4/8 Murray at 2,375 and even decline to the levels around 2,360.
Given that gold is above the 200 EMA, a recovery is in the cards. If the price of gold consolidates above 2,416 in the next few days, the outlook would be bullish and gold could climb to 2,468 and even reach the psychological level of 2,500.