Gold is trading around $4,124, showing an upward trend. Following the opening of Thursday's Asian session, there was a strong upward rally after breaking out of the downtrend channel that had formed since August 28.

XAU is now trading above the 200-day EMA, so we believe it could continue to rise in the coming hours, at least until it encounters strong resistance at the daily R2 level, located at $4,170.

Conversely, if gold consolidates below the 200-day moving average, around $4,114, in the coming hours, we could expect a technical correction toward the $4,062 area—where gold decisively broke out of the downtrend channel—and this, in turn, could be interpreted as a positive signal to open long positions.

One entry point could be to wait for it to reach $4,170 in the coming hours; this level could offer a good opportunity to open short positions in gold over the next few days.

As long as the price of gold consolidates above the Murray 2/8 level, there is a strong positive signal; therefore, any pullback from this area could be considered a buy signal, pending the price closing the gap left on September 23 around $4,279.

A key medium-term target is for the price to reach the 61.8% Fibonacci retracement level, around $4,375; this will be the ultimate target for bulls, so as long as the price remains above the psychological level of $4,000, we will look to open a long position in the coming days.