Gold is moving lower over the last hours following the strong pullback from the 4-month high of 1366. The price headed south and is challenging the short-term ascending trend line, which has been holding since December 12, near 1345 support level. The short-term technical indicators seem to be turning negative and point to more weakness in the market.
In the 4-hour chart, the RSI indicator is pointing sharply to the downside, below the 50 level, while the MACD oscillator is falling and is losing momentum in the positive territory. Technical indicators are signaling further losses in the near-term.
Currently, the price is slipping below 1345 (immediate support) and the 40-day SMA, opening the door to test the 23.6% Fibonacci retracement level at 1335 of the up-leg with the low of 1236 and the high of 1366. Clearing this key level could see additional losses towards the 1331 barrier.
Conversely, upside moves are likely to find resistance at 1357 but the precious metal would first need to go through the 20-day SMA. A climb above the aforementioned obstacles could see gains towards the 1366 barrier.
