Early in the American session, gold is trading around 2,373, below the 200 EMA, and below the key level of 2,375. Gold is currently oversold.

Yesterday, after reaching the top of the downtrend channel around 2,431, XAU/USD made a strong technical correction. As a result, the price dropped to a low of 2,361.

If gold continues to trade below 2,366, it is likely to reach the 2,360 zone. If this level is broken, the price could reach 2,349, a weekly support that coincides with the price levels recorded in early July.

On the other hand, if gold consolidates above the 200 EMA and above the 4/8 Murray in the next few hourstrading above 2,380, it will be seen as an opportunity to buy. Then, the metal could reach 2,390 and even the 21 SMA located at 2399.

Since gold is oversold, there is strong support around 2,360. If gold bounces around this level in the next few hours, it will be seen as a buying opportunity.