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If gold consolidates below $4,631—where the 21-day SMA is located—it could be a negative signal, or we could sell until it reaches the lower band of the uptrend channel at $4,600.
A decisive break below the uptrend channel and consolidation below $4,610 could keep the outlook bearish for gold, and it could quickly fall to the 6/8 Murray level around $4,530. Finally, we expect XAU to find strong support around $4,463, near the 5/8 Murray level.
A good entry point for short positions could be waiting for gold to reach the 61.8% Fibonacci level in the coming hours; alternatively, if the price consolidates below the 21 SMA around $4,636, that would be a key trigger to sell.
The Eagle indicator has reached overbought levels, and technically, the main idea could be to sell in the coming days. Gold could trigger a strong downward acceleration only if it breaks below the uptrend channel; in that case, we could expect a sharp technical correction toward the psychological level of $4,500.
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