Gold is trading around $4,031, after pulling back when it hit strong resistance around $4,081 during Wednesday's US trading session. This level coincided with the upper band of the downtrend channel that has been forming since early July.

Currently, XAU is trading near the 61.8% Fibonacci retracement level, so we believe the uptrend could resume in the coming days.

The daily S_1 support level is around $4,022; a technical bounce above this zone could be considered an opportunity to open long positions with targets at $4,070 and, ultimately, around the 2/8 Murray level.

A decisive breakout and consolidation above the downtrend channel could be interpreted as a positive buy signal, with targets at $4,121—where the price left a gap—and, ultimately, gold will likely reach the 200 EMA, around $4,200.

Conversely, if the metal falls below $4,030, the outlook could remain negative, and it could be expected to reach the $3,982 area in the coming days or hours, eventually reaching the 161.8% retracement level, around the 1/8 Murray level, at $3,906.

The Eagle indicator is showing a negative signal. So if, in the coming hours, the price moves toward the 2/8 Murray level or the 38.2% Fibonacci retracement level, it could be considered a selling opportunity. However, we should exercise caution, as a break above this zone could trigger a strong upward move.

Our outlook could remain bullish for the next few days, at least until gold closes the gap it left at $4,121; as a final target, we expect it to reach the 3/8 Murray level around $4,218.