Early in the American session, gold is trading around 2,666 below the 21 SMA and above the 200 EMA.

Gold is approaching an important support located at 2,656. This level is key and decisive, since above it, we could expect a recovery of gold. Below it, the downtrend could even escalate and gold could reach 2/8 of Murray at 2,578.

If gold consolidates above 2,659 in the next few hours, any technical rebound will be seen as an opportunity to buy with targets at 2,691 and 2,695.

In turn, on the H4 chart, we observe that gold sharply broke the bullish trend channel. It suggests that in case there is a pullback towards 2,695, it will be seen as a signal to sell with short-term targets around 3/8 of Murray located at 2,617.

If gold consolidates above the psychological level of 2,700, the outlook could turn bullish again and the instrument could reach 2,734.

On the contrary, the outlook could turn bearish if gold trades below 2,650.