Gold attempted to recover some lost ground earlier in the day, but its bullish efforts proved short-lived around 1,993 in the four-hour chart as the broken support trendline switched to resistance.
The focus has turned back to the key support region of 1,976, which overlaps with the 38.2% Fibonacci retracement of the 1,804-2,079 uptrend. Given the oversold signals coming from the RSI and the Stochastic oscillator, there is a potential for an upside correction or some consolidation near that level. If selling forces persist, the precious metal may seek shelter around February’s peak of 1,960. The 50% Fibonacci level of 1,945 could next protect the market from sellers reaching the crossroads of two key trendlines around 1,925.
On the upside, there are several obstacles which could ruin potential bullish actions. Above the 1,993 mark, the simple moving averages (SMAs) and the 23.6% Fibonacci level could immediately cap the price within the 2,005-2,015 territory. Notably, the short-term descending trendline is placed in the same territory. Then, the steeper support-turned-resistance trendline at 2,028 could be another hurdle, blocking the way towards the crucial 2,048 barrier. Beyond the latter point, all the attention will shift to the record high of 2,079.
All in all, gold is facing a discouraging situation, likely preparing for another bearish round following the pullback from 1,993. Yet, selling pressures might prove limited as the key floor of 1,976 is nearby.
