Gold is trading around $4,289 within the upward trend channel formed on the charts since October 28. A strong technical correction is observed after reaching a high of $4,350, but approaching important support levels.

In the coming days, gold (XAU/USD) is expected to reach key support at $4,212 around the 21 SMA or the 3/8 of Murray located at $4,218, and could even reach the bottom of the uptrend channel around $4,200.

If this scenario occurs and gold rebounds above $4,200, it could be seen as a signal to open long positions, with a target at $4,375, and we even expect it to reach the psychological level of $4,500.

A sharp break in the uptrend channel and a consolidation below $4,200 could push gold down to the key support level of 2/8 Murray. The instrument could even reach the October 28 low around $3,900.

The Eagle indicator is approaching oversold levels, so we believe that there could be a technical correction in the coming days, and gold could reach the key level of $4,200, followed by a technical rebound.