Gold remains under pressure and risk is still to the downside as prices continue to drift lower from the 2,079.19 record high. The short-term technical indicators are bearish and point to more weakness in the market.
Looking at the 4-hour chart, gold prices are being capped by the 1,984 resistance and the 23.6% Fibonacci retracement level of the down leg from 2,079.19 to 1,952 at 1,982. The RSI is pointing down below the neutral threshold of 50, while the MACD is standing in the negative territory above its trigger line.
The next target to the downside is the 1,952 support level. At this stage the market would likely see a resumption of the downtrend and put in place a lower low at 1,935.
Upside moves are likely to find resistance at the 23.6% Fibonacci at 1,982 ahead of the 1,984 barrier. There is an important resistance zone between the 2,000 psychological mark and the 200-period SMA at 2,003. Breaking this level could see a re-test of the 50.0% Fibonacci at 2,015 and turn the bias to bullish.
In the short-term, the bearish phase remains in play especially if gold prices continue to trade below the 23.6% Fibonacci and under the key 2,000 level.