Gold Technical Analysis: Under pressure beyond short-term key support

Gold stays on the back foot after declining from the multi-year top.
50-bar SMA, a three-week-old rising trend line restrict short-term declines.
Buyers could wait until the upside break of $1,580.

Anil Panchal FXStreet

Gold prices remain under pressure for the second consecutive day while taking rounds to $1,558 during the Asian session on Thursday. The Bullion dropped from the highest since early 2013 on Wednesday.

Considering the bearish signal from 12-bar MACD, prices are likely to remain soft. In doing so, a confluence of 50-bar SMA and an upward sloping trend line since December 20 around $1,542.80/1,543.30 can be the sellers’ first target.

Should prices keep declining below $1,542.80, December 31 high near $1,525 and 61.8% Fibonacci retracement level of December-January upside, at $1,516.80, could gain the Bear’s attention.

Meanwhile, buyers will look for entry beyond Monday’s top surrounding $1,580 to aim for $1,600.

Further, the yellow metal’s rise past-$1,600 could challenge the recent high around $1,612 ahead of rising towards March 2013 top near $1,620.

Gold four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	1557.88
Today Daily Change	-2.76
Today Daily Change %	-0.18%
Today daily open	1560.64

Trends
Daily SMA20	1507.97
Daily SMA50	1486.06
Daily SMA100	1495.23
Daily SMA200	1428.35

Levels
Previous Daily High	1611.3
Previous Daily Low	1552.55
Previous Weekly High	1553.4
Previous Weekly Low	1510.85
Previous Monthly High	1525.1
Previous Monthly Low	1454.05
Daily Fibonacci 38.2%	1574.99
Daily Fibonacci 61.8%	1588.86
Daily Pivot Point S1	1538.36
Daily Pivot Point S2	1516.08
Daily Pivot Point S3	1479.61
Daily Pivot Point R1	1597.11
Daily Pivot Point R2	1633.58
Daily Pivot Point R3	1655.86

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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