Gold is trading around $3,904, rebounding after having reached the psychological level of $3,900. Strong downward pressure is evident after the price touched the 21-day simple moving average (SMA); furthermore, yesterday, gold reached the upper band of the secondary downtrend channel that has been forming since October 27.

In the coming hours, we could see a technical rebound toward $3,940. However, if downward pressure prevails, this area could be considered an opportunity to open short positions, in anticipation of the gold price closing the gap left at the close of Friday's session.

Technically, we expect gold to resume its downtrend following a pullback toward $3,940, so we will look for opportunities to sell below this zone with targets at $3,870; we would even expect the price to find strong support around the lower band of the downtrend channel, at $3,835.

Conversely, a decisive break above $3,940 could cause gold to face the next resistance level at $3,985; a sharp break above this resistance level could accelerate gold's upward movement and potentially reach the 200-period exponential moving average (EMA) around $4,120.

Given that gold has left a gap, we believe that once this gap is filled, a technical reversal could occur, and gold could recoup some of its losses in the coming days, reaching $4,120 and $4,200.