Gold technical analysis: Trades below $1,500, looks south on bearish crossover

• Gold is looking south with the 4-hour chart reporting a bearish crossover. 
• A drop to the 50-day MA support looks likely. The bear case would weaken above $1,517.

Gold is currently trading in a sideways manner around $1.498, having hit a high of $1,512 on Monday. 

The 4-hour chart shows the 50-period moving average has crossed below the 200-period moving average. That bearish crossover indicates the path of least resistance is to the higher side. 

On the downside, the key support is seen at $1,472 (50-day moving average). 

The bearish case would weaken if prices find acceptance $1,517 (Aug. 30 low). That would invalidate the double top bearish reversal pattern confirmed on Sept. 6. 

As of now, however, a move above $1,517 looks unlikely. It is worth noting that the yellow metal failed to hold onto gains above $1,510 on Monday despite the Saudi attacks and the resulting risk-off tone. So, it seems safe to say that the bulls are exhausted and there is scope for a deeper pullback to the 50-day MA. 

4-hour chart

Trend: Bearish

Technical levels