Gold is trading around $3,888 under downward pressure, below the Murray 2/8 level and the 21- and 200-day moving averages, showing signs of exhaustion in the downward momentum and potentially signaling a technical rebound in the coming days.

Yesterday, during the US trading session, in an attempt to close the gap left on October 30 around $3,875 from the high of $4,145, the price fell to $3,859. Although the likelihood of a trend reversal was uncertain for bulls, technically, the price was expected to fall below this zone to close the gap.

Our view is that the price will consolidate above $3,850. If a technical rebound occurs in the coming hours around $3,859—which represents the November 12 low—a double-bottom pattern could show up. If a technical rebound occurs, this could be interpreted as a clear buy signal, suggesting that the price will reach the psychological level of $4,000 in the coming days.

Conversely, if gold falls below $3,850, we would expect it to continue its downtrend, with the next support level located around 1/8 Murray, at $3,750. This level could serve as a solid bottom for gold; however, from a technical standpoint, we expect a recovery above $3,850 in the coming days.

Our trading plan For the next few hours is to buy gold around $3,880 or $3,850, with a target at the 21-day SMA at 3,990; ultimately, we could expect it to reach the 2/8 Murray level around $4,062 in the coming days.