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.

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.

RISK WARNING: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.