Gold price started a strong downside correction from well above the $1,600 level against the US Dollar. The price declined below the $1,575 support level and traded close to the $1,540 level.
A low is formed near $1,540 before the price started an upside correction. The price traded above $1,550, the 50 hourly simple moving average, and the 23.6% Fib retracement level of the recent decline from the $1,611 high to $1,540 low on FXOpen.
However, there are a few key hurdles on the upside near the $1,562 level, above which the price could climb above the $1,570 and $1,575 levels.
On the downside, there is a connecting bullish trend line forming with support near $1,552 on the hourly chart. A clear break below the trend line support and the 50 SMA could push the price back towards the $1,540 and $1,532 support levels.
