Gold Technical Analysis: runs into 78.6% Fib of $1,321, 4H RSI and MACD diverge

Gold is struggling to find acceptance above $1,321, which is the 78.6 percent Fibonacci retracement of the sell-off from $1,365 to $1,160 and could see a minor pullback as the short duration indicators are beginning to diverge in favor of the bears.  

4-hour chart

As seen above, the previous 4-hour candle clocked a high of $1,323 – a level last seen  in May 2018 – but failed to close above the 78.6 percent Fibonacci retracement level of $1,321.  

Further, the current 4-hour candle is reporting losses below that Fib hurdle.  

Notably, the relative strength index (RSI) has produced a lower high in response to a higher high on price. The moving average convergence divergence (MACD) bars continue to lose altitude, signaling weakening bullish pressures.  

Therefore, a minor pullback, possibly to levels below $1,300, could be seen before Friday’s NY close.  

Trend: minor pullback likely