Gold remains under pressure and risk is still to the downside as prices continue to drift lower from the 1,847 key level and the short-term simple moving averages (SMAs). The technical oscillators are looking neutral and point to more weakness in the market. Looking at the 4-hour chart, the RSI is pointing marginally down below the 50 level, while the MACD is moving sideways near the zero level.
The next target to the downside is the 1,830 support level. At this stage, the market would likely see a resumption of the downtrend from the 1,959 peak and overrun the 1,819 mark ahead of the 1,800 low, registered in December 2022.
Upside moves are likely to find resistance at the 50-period SMA near 1,847 before hitting the 1,870 barrier. There is an important resistance zone between 1,890 and 1,900, which encapsulates the 200-period SMA.
In the short term, the bearish phase remains in play especially if gold prices continue to trade below the SMAs and only a jump above the 200-period SMA may change the outlook to positive.
