Gold is trading around 4,041 above the 200 EMA, rebounding after reaching a low of 3,996 during the European session.

Gold managed to cover the gap left at about 4,001 on November 7. Now gold is trying to continue this technical rebound. If gold consolidates above 4,016 in the next few hours, any pullback will be seen as an opportunity to take long positions with targets at 6/8 Murray around 4,062.

If gold breaks decisively in the coming hours and consolidates above 4,062, we could expect it to continue rising until it reaches the 21 SMA located at 4,103 and could even reach 4,200 in the coming days.

The Eagle indicator is showing a positive signal, so we will continue to buy gold in the coming days as long as the price consolidates above the psychological level of 4,000.

A sharp break in consolidation below 4,016 could mean a further downward movement, and the instrument could reach 5/8 Murray around 3,906. A sharp break and consolidation below 4,016 could mean a following upward movement, so gold could reach 5/8 Murray around 3,906.