Gold Price Analysis: Pares early losses to multi-day lows, back near $1700 mark

• Gold witnessed some selling on Friday and broke below a multi-week ascending trend-line support.
• The intraday bearish pressure eased near 23.6% Fibo., which should now act as a key pivotal point.

Gold came under some heavy selling pressure on the last trading day of the week and finally broke down of its three-day-old consolidative price action.

The downward momentum dragged the commodity further below a short-term ascending trend-line support, extending from YTD lows set on March 20.

The intraday bearish pressure eased near 23.6% Fibonacci level of the $1455-$1748 upsurge, which should now act as a key pivotal point for short-term traders.

Meanwhile, technical indicators on hourly charts have been gaining negative momentum, albeit have still managed to hold in the bullish territory on the daily chart.

The set-up warrants some caution for bearish traders, making it prudent to wait for some strong follow-through selling before positioning for an further downfall.

A convincing break below the $1675 region (23.6% Fibo.) might be seen as a fresh trigger for bearish traders and accelerate the fall further towards the $1644 support area.

On the flip side, the mentioned trend-line support break-point, around the $1708 region, might now act as an immediate resistance and keep a lid on any attempted recovery.

Gold 4-hourly chart

Technical levels to watch