The near-term pressure is back on for gold in trading today. The precious metal had been holding in a consolidative phase coming into this week, above the $2,300 mark. But amid a break of key near-term support today, we are seeing sellers pick up the momentum now. Here’s a look at the hourly chart:

Gold buyers did manage to hang on at the 100-hour moving average (red line) since the end of last week. But they were unable to force a breakthrough, as price action did not challenge the upper near-term limit of the 200-hour moving average (blue line). In turn, sellers are pushing price back down now and that sees the near-term bias turn more bearish.

So, are there any notable downside levels to watch from here?

The first one will be the $2,300 mark itself. That will be one to watch especially on the daily chart. Then, there is the 23 April low at $2,391 to contend with. However, I’d argue that a firm break below $2,300 will help to set off further downside momentum in gold in any case.

The 38.2 Fib retracement level at around $2,260 and then the $2,200 mark will be the next two key technical levels to watch. That is should the correction lower run much deeper on a break under $2,300. Those are the recognised risk levels to be mindful of.

As for the fundamental plays, the dollar is seeing some push and pull this week. But all eyes are now on the Fed tomorrow next. That will be the first key risk event for gold, before the US jobs report on Friday factors into play.

This article was written by Justin Low at www.forexlive.com.