Gold came under fresh selling pressure after rising as high as 1,952 in the first trading day of September, exiting the rising channel in the four-hour chart and pulling back into the May-August bearish channel.
The price is currently looking for a rebound around the 38.2% Fibonacci retracement of the 1,987-1,884 downtrend at 1,923, but the technical signals are not promising.
Although the stochastic oscillator is sending oversold signals, the falling RSI has yet to cross below 30, while the MACD has started a new negative cycle below zero and its red signal line. That keeps the bias on the bearish side, making a downfall to 1,910-1,915 likely. If the bears achieve a close below the 1,900 psychological mark, the focus will fall on the five-month low of 1,884.
Alternatively, the bulls may fight for a bounce above the simple moving averages and the 23.6% Fibonacci of 1,936. A penetration higher could immediately stall near the broken rising channel at 1,943. If the recovery survives above the 61.8% Fibonacci and the 1,950 mark, the precious metal could accelerate towards the 1,970 resistance.
All in all, gold is at risk of falling back to the 1,900 area. Yet, as the technical indicators start to identify oversold conditions, the bulls might be around the corner.
