Gold remains under pressure as it has been consolidating within a trading range over the last three weeks with upper boundary the 1307.50 resistance level and lower boundary the 1289 support barrier. The short-term technical indicators are bearish and point to more weakness in the market.
Looking at the 4-hour chart, gold prices are looking capped by the 20-simple moving average (SMA). The Relative Strength Index (RSI) is heading lower below the 30 level and is sloping downwards, while the MACD oscillator is flattening near the zero line.
The next target to have in mind to the downside is the lower boundary of 1289. At this stage, a drop below this area would likely see a resumption of the downtrend and challenge the 1282 support hurdle. Further losses could drive the precious metal towards the 23.6% Fibonacci retracement level of the upleg from 1122 to 1366, around 1272.
Upsides moves are likely to find resistance above the 1300 key level. Rising above this zone would push the price until the upper boundary of the consolidation area of 1307.50, which overlaps with the 200-day SMA. Clearing this level would shift the focus to the upside towards the 1317 resistance barrier and turn the bias to bullish.
In the short-term, the neutral phase remains in play especially if gold price continues to trade below the 23.6% Fibonacci and under the psychological 1300 level.