Gold price started a major downside move to step into a bearish zone
Gold price started a major downside move from well above the $1,315 support level against the US Dollar. The price traded below the $1,307 support level to move into a bearish zone.
Sellers gained traction and the price broke the $1,300 support. There was even a close below the $1,300 support and the 50 hourly simple moving average. The price traded as low as $1,286 and it recently corrected above the $1,295 level on FXOpen UK.
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However, there is a strong resistance formed near $1,296 and a bearish trend line on the hourly chart. Moreover, the 50 hourly SMA is likely protect gains above the $1,296 level.
On the downside, an immediate support is near the $1,290 level. If there is a break below the $1,290 support, the price may even clear the $1,288 swing low in the short term. The next support is at $1,284.
Author
FXOpen Broker Team
FXOpen
