Early in the European session, gold is trading around 3,296, bouncing after reaching the area of 3,268, a key level that gave it a strong technical rebound.

We now expect it to reach the resistance zone of 3,320 in the coming days, the area of the top of the downtrend channel.

According to the H4 chart, gold is showing oversold levels, and we see a positive signal. Therefore, any pullback, as long as the price remains trading above 4/8 of the Murray, will be seen as an opportunity to continue buying.

Conversely, if the gold price falls below 3,280, it could continue its bearish cycle and could reach 3,242, a key support level.

A sharp breakout of the downtrend channel and consolidation above 5/8 of the Murray could signal a recovery for gold. If this happens, we could expect it to reach 6/8 Murray at 3,359 and even 7/8 Murray around the psychological level of $3,400 in the coming days.