Early in the American session, the XAU/USD is trading around 3,373, above the 21 SMA, and above the 7/8 Murray level. It is within an uptrend channel and showing signs of a possible recovery in the coming days.

On the daily chart, we can see that gold has been in a technical correction for almost a week. So, a recovery is likely in the coming days only if the price consolidates above 3,350.

If gold continues its recovery and settles above the 21 SMA at 3,364, this could be seen as a buying opportunity with targets at 8/8 Murray at 3,437. The metal could eventually reach +1/8 Murray around 3,515.

Conversely, if gold breaks the uptrend channel and consolidates below 3,350, it could be seen as a signal to sell, as we could expect it to reach 6/8 Murray at 3,281 and eventually 5/8 Murray around 3,203.

Right now, the price of gold is at a key point. Therefore, we should be alert for the price to trade above 3,350, which could signal a bullish advance in the coming days. On the other hand, it could signal a change in trend and a strong technical correction below that area.