Early in the American session, Gold (XAU/USD) is trading around the 50% Fibonacci retracement. The metal remains under bearish pressure and it is likely to reach the support zone of the 5/8 Murray (1,656) level that coincides with the 61.8% in the next few hours.

Around 1,656 - 1,670 is the area of strong support. If gold bounces around this level in a few coming hours, it will be seen as a buying opportunity.

Gold could be making a short technical correction to resume its bullish cycle. So, the price could reach 8/8 Murray around 1,750 in the short term.

In case gold falls below 1,656 on daily charts and consolidates below this level, it is likely that gold could quickly drop towards the low of September 27 around 1,615.

Since October 6, the eagle indicator has been showing a negative signal. If gold is trapped under downward pressure in the coming hours, it could reach 1,656.

Our trading plan for the next few hours is to wait for a technical bounce at around 1,656 -1,666 to buy, with targets at 1,670 and 1,697 (200 EMA).