Early in the American session, gold was trading around 2,618 within the bearish trend channel forming since December 20th, below the 21 SMA, and above 3/8 Murray.

On the H4 chart, we can see that gold is under bearish pressure. Therefore, it could reach the bottom of the bearish trend channel around 2,594 in the next few hours and could even reach 2/8 Murray located at 2,578.

We must remember that gold left a gap in November around 2,562. Thus, it is likely that if it falls below 2/8 Murray, we could expect it to cover this gap and could even reach the psychological level of $2,500.

On the contrary, if gold breaks and consolidates above 2,625 in the next few hours, the outlook could be positive and we could expect a recovery of gold with targets at 2,643 (200 EMA) and even 4/8 Murray at 2,658.

We could expect gold to continue its decline in the coming days only if it consolidates below 3/8 of Murray. On the contrary, the outlook could be positive above the 21 SMA.