XAU/USD is trading around $4,466 above the 21 SMA, consolidating around this area, as a strong technical correction is likely to occur if the price falls below this area.
After the opening of the Asian session, gold underwent a technical correction, finding strong resistance around $4,484 towards $4,450. However, this area coincided with the 21 SMA, which encouraged a technical rebound.
This indicates that gold could continue to rise in the coming days and reach the 5/8 Murray at $4,531 and could even reach its all-time high around $4,445. Finally, the price could surge to the 6/8 Murray at $4,625.
We can see in the chart that gold left a gap around $4,327. If the price falls below $4,460 and consolidates below this zone in the coming hours, it could be the start of a strong technical correction. The instrument will likely reach this level in the coming days and could even fall towards $4,415, where the 200 EMA is located.
Our outlook for gold remains bullish, so if there is a technical rebound at $4,375-4,315, we could open long positions.
At current price levels, we should wait for confirmation to enter short positions only if the price falls below $4,460.