Early in the American session, gold is trading around 3,120 around 8/8 Murray, reaching resistance levels. We believe gold could make a strong technical correction in the coming hours.

Having found good support around 6/8 of the Murray 2,968, gold made a strong technical rebound to the area of 3,130. Thus, we believe the yellow metal could resume its bearish cycle.

Technically, gold's strong rally was driven by market fears and its status as a safe-haven asset. Now, the global appetite for risk represents an opportunity for bears. If gold falls below the Murray 8/8 level, we could expect a strong technical correction toward the 21SMA located at 3,036.

On the other hand, if gold reaches the 3,145 level, it will be seen as a signal to sell, as this level serves as strong weekly resistance. Therefore, we believe this level could act as a barrier to the gold price and will be seen as a signal to sell.

The Eagle indicator is reaching oversold levels and is giving a negative signal. So, we will look for opportunities to sell below 3,145 or below 3,131 with a target at 3,036.