Gold is trading around 2,402.86 below the downtrend channel formed since July 17 and within the uptrend channel formed after reaching the low of 2,384.

Gold remains under bearish pressure and below the 21 SMA located at 2,412. A technical correction is likely to occur and the metal could reach the 2,389 level, which coincides with the bottom of the bullish trend channel where it left a small GAP.

On the contrary, if gold breaks the downtrend channel sharply and consolidates above 2,406, we could expect it to continue rising. So, the price could reach 2,424 and even 6/8 of Murray at 2,437.

Gold is technically oversold and any technical rebound in the coming days will be seen as an opportunity to buy.

As long as gold trades above the 200 EMA and above 4/8 Murray, the outlook remains bullish and XAU/USD could reach the psychological level of $2,500 around 8/8 Murray in the coming days.