Gold price failed to stay above the $1,712 and $1,700 support levels against the US Dollar. The price started a fresh decline and broke the $1,700 support zone to move into a short term bearish zone.
There was also a close below $1,695 and the 50 hourly simple moving average. The price traded as low as $1,671 on FXOpen and it is currently correcting higher.
An immediate resistance is near the $1,685 level and a declining channel on the hourly chart. If there is an upside break above the $1,685 level, the price might recover towards the $1,695 resistance or the 50 hourly SMA.
Overall, it seems like upsides are likely to remain capped in gold unless it clears the $1,700 hurdle. On the downside, there is a key support near the $1,670 level, below which it could test $1,650.
