Early in the American session, gold is trading around 2,332.51, below the 200 EMA and 21 SMA, within a downtrend channel forming since May 22 under bearish pressure. Yesterday, gold failed to break above 2,351, the level that coincided with the top of the downtrend channel.

Gold is currently trading below this resistance of 2,351 and is making a technical correction that could continue in the coming hours.

If gold consolidates above 2,337 in the next few hours, the bullish movement might resume and the price could reach the top of the downtrend channel around 2,350.

Additionally, if there is a sharp break above this bearish channel, we could expect gold to reach 6/8 Murray at 2,375 and, finally, 7/8 Murray at 2,437.

Given that gold is below the 200 EMA, the bearish movement is likely to continue and the price could reach the area of 5/8 Murray around 2,412 or the bottom of the downtrend channel at 2,310. If this happens, it will be seen as an opportunity to buy during a technical rebound.

Since the eagle indicator is showing a positive signal, we believe that a technical bounce around 2,312 or above will be seen as an opportunity to buy with targets at 2,337 and 2,350.

If bearish pressure prevails and gold falls below 5/8 Murray, it could be the start of a new bearish cycle and gold could quickly drop to 4/8 Murray located at 2,250.