Gold is heading south over the last couple of hours, while it started the day in green. In the 4-hour chart, the precious metal is developing within the 50.0% and 61.8% Fibonacci retracement levels of the downleg with the high of 1366 and the low of 1307. The price struggled within 1336 and 1343 after the aggressive jump towards 1340.90 during today’s European session.
Gold is heading south over the last couple of hours, while it started the day in green. In the 4-hour chart, the precious metal is developing within the 50.0% and 61.8% Fibonacci retracement levels of the downleg with the high of 1366 and the low of 1307. The price struggled within 1336 and 1343 after the aggressive jump towards 1340.90 during today’s European session.
In the near-term, the technical indicators suggest that negative movements are more likely to occur given that the RSI is sloping downwards in the positive zone, while stochastic is on track to post a bearish crossover in the overbought area above 80. Moreover, the price has slipped below the 40-simple moving average, suggesting further losses.
If the precious metal drops below the 50.0% Fibonacci mark of 1336, it could hit the 38.2% Fibonacci level of 1329, which holds near the 20-day SMA.
Conversely, upside moves are likely to find resistance around the 61.8% Fibonacci level of 1343. Moreover, a bullish rally could extend gains towards the 1361.40 resistance barrier.
