Early in the European session, gold is trading around 3,409, undergoing a technical correction after reaching a high around 3,423, a level it reached during yesterday's American session.

After reaching 3,423, gold is undergoing a technical correction and is likely to continue its decline to reach the 6/8 Murray level at 3,398.

If gold consolidates below the 21SMA at 3,409 in the next few hours, it will be seen as a clear signal to sell, with targets at 3,398 and the 5/8 Murray level at 3,378.

On the other hand, if there is a pullback towards the 7/8 Murray level at 3,417, or even the high of 3,423, it will be seen as an opportunity to sell, as technically overbought levels are observed.

A sharp break below 3,398 could signal a change in trend, and in the short term, gold is expected to reach the key level of 3,330. Gold gapped at this level on August 22 and could even reach the key support of the 2/8 Murray level at 3,320.

Given that gold is reaching exhaustion levels, we will look for opportunities to sell below 3,423 with short-term targets at 3,320.