Gold is trading around $4,140, erasing all of Monday's gains. The downward momentum is likely to prevail if gold consolidates below the 21-period simple moving average (SMA) in the coming hours.

Gold is showing signs of exhaustion in its upward momentum. From a technical perspective, the correction could continue, potentially reaching the psychological level of $4,000 or the 2/8 Murray zone, around $4,062.

Given that gold is trading below a strong resistance zone around $4,200—a level it failed to break through—and that a technical correction has occurred since then, it is expected to continue falling in the coming hours.

In this regard, we should monitor the $4,134 level; below this zone, we will look for selling opportunities with targets at the lower band of the uptrend channel, around $4,040.

Conversely, if gold consolidates above $4,134 in the coming hours, the outlook could be positive, and the instrument would continue to rise until reaching $4,218—around the 3/8 Murray level—and could ultimately reach the upper band of the uptrend channel, which coincides with $4,237 and the 200-period EMA, around $4,255.