Early in the American session, gold is trading around 2,912 forming a pennant pattern. If a sharp break above 2,914 occurs, the metal could return to the 7/8 Murray levels located at 2,929.

On the other hand, in case the bearish pressure prevails, we expect the price to reach the bottom of the uptrend channel around 2,892. In case gold reaches 6/8 Murray around 2,890, it will be seen as an opportunity to buy with targets at 2,915 and 2,963 where 8/8 Murray is located.

The eagle indicator is showing an oversold signal. So, we believe that any pullback will be seen as an opportunity to buy during the next few days.

A consolidation below 2,890 on the H4 chart could change the bullish cycle and we could expect gold to fall towards the 200 EMA located at 2,840. The price could even reach the pivot point of 2,812.

Our trading plan for the next few hours is to buy gold around 2,892 above 2,915, with targets at 2,930 and 2,968. The Eagle indicator is showing a positive signal which supports our bullish strategy.