Gold price extended its increase above $1,865 before it faced sellers against the US Dollar. The price traded towards $1,870 and started a fresh decline.
There was a break below the $1,860 level and the 50 hourly simple moving average. The price even settled below the $1,850 level and the 50 hourly simple moving average. It is now consolidating above the $1,840 level.
The first key support is near the $1,840 level. The next major support could be $1,835, below which there is a risk of more downsides. Any more losses could lead the price to $1,820 on FXOpen.
On the upside, an immediate resistance is near the $1,850 level. There is also a key bearish trend line forming with resistance near $1,860 on the hourly chart. The next main resistance could be near the $1,870 level.
