Early in the American session, gold is trading around 3,409, above the 6/8 Murray level, with the possibility of a continuation of the bullish move that could reach the 7/8 Murray level at 3,417. Once above this level, gold is expected to even reach the 8/8 Murray level at 3,437.

Gold has been struggling to consolidate above 3,398, and after falling to the bottom of the uptrend channel formed since August 21, it gained bullish momentum. Since then, we have seen a bullish sequence. However, for this to happen, we expect consolidation above the psychological level of $3,400.

If gold reaches 3,417 or 3,437, we could expect a strong technical correction at both levels. Since September 21, we have seen that gold has left a gap at 3,300 and is likely to return to the price levels in the coming days.

Gold could find a strong technical rebound around 3,398. In this area, we could look for opportunities to resume buying with targets at 3,437.

Conversely, if gold falls below the 21SMA at 3,383, the outlook could be negative, and we could expect gold to reach 4/8 of the Murray at 3,359 and eventually reach 2/8 of the Murray at 3,320.

The Eagle indicator is reaching overbought levels, and the latest candles formed on the H1 chart show an exhaustion of bullish strength.