Gold (XAU/USD) is currently hovering around 3,743 after hitting a fresh high near 3,760, with price action showing early signs of a mild technical correction. The key level to watch in the coming sessions is 3,750, which aligns with the 8/8 Murray level and the 38-period SMA. A sustained move below this zone could trigger stronger selling pressure, opening the path toward the 7/8 Murray level at 3,671. If bearish sentiment deepens, the decline could even extend further to the 6/8 Murray level at 3,593, highlighting the possibility of a sharper correction in the short term. Conversely, if the price manages to consolidate above 3,750, buyers may regain control, potentially driving the metal toward the next resistance at +1/8 Murray, located around 3,828.
From a broader perspective, the daily chart reveals that gold has been in a strong bullish cycle without experiencing any meaningful corrections since August 18. This uninterrupted rally increases the likelihood of a series of technical pullbacks in the coming days, as overextended markets often retrace before resuming their primary trend. Adding to this view, the Eagle Indicator has surged to the 95-point level, which is considered extremely overbought territory, signaling that the upside momentum may be losing steam. With such conditions in play, a corrective phase seems more probable, making any short-term rebound an attractive opportunity for sellers rather than a confirmation of continued bullish momentum.
