XAU/USD is trading around $4,335 under downward pressure. Following a technical bounce above the 3/8 Murray level during Tuesday's European session, gold rose to reach the 4/8 Murray level, which coincided with strong resistance from the 200 EMA and the 21 SMA, as well as the upper band of the downtrend channel.

If prices continue to rise in the coming hours and consolidate above $4,375, the outlook could be positive, and we expect a strong upward move to reach $4,453 around the 5/8 Murray level. The instrument could even retrace to the psychological level of $4,500, eventually reaching the 6/8 Murray level at around $4,531.

Below the 200 EMA, gold could remain under bearish pressure. Technically, we could expect it to retest the 3/8 Murray level around $4,296 and eventually reach the 2/8 Murray level around $4,218.

Our outlook for the coming days remains bearish as long as the price trades below the 4/8 Murray level, and we could continue to sell with targets at $4,296 and $4,218.