Gold holds below the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, signaling further losses. In the short-term though, the market appears to be in a largely neutral mode after the fall below the 1207 hurdle. The RSI is largely moving sideways below the 50 level. Notice though that the MACD has dropped below its trigger and zero lines; the decline below the trigger line may signal a fresh wave of negative momentum.
If price action jumps above the SMAs, there is scope to test the 1207 resistance level, taken from the high on September 6. Clearing this key level could see additional gains towards the 1214.15 barrier, identified by the August 28 peak.
On the flipside, if the precious metal dips below the 1190 key level, then the focus would shift towards the 1183 support level, identified by the low on August 24. If this level is breached, it would increase downside pressure and bring about a continuation of the bearish tendency. From here, the precious metal would be on the path towards the 1172 low.
To conclude, in the bigger picture, the price has been developing in bearish mode since the pullback on the 1365 resistance barrier.
