Gold had been experiencing a pullback following its recent peak at 1,987, with the price slicing through both its 50-day simple moving average (SMA) and the Ichimoku cloud. What’s more interesting though is that the price is closing the gap with the upward sloping 200-day SMA, which is a crucial technical zone for bullion.

The short-term oscillators are indicating that the recent decline is likely to accelerate. Specifically, the MACD is weakening further below zero and its red trigger line, while the RSI is flat below its 50-neutral threshold.

If the slide extends, the bears are likely to give a tough fight around the 200-day SMA before the four-month low of 1,893 comes under scrutiny. Further declines may then cease at the March resistance of 1,857, which could serve as support in the future. A violation of that zone could pave the way for the 2023 bottom of 1,804.

Alternatively, should the price bounce off its 200-day SMA and reverse back higher, initial resistance could be met at the February high of 1,959. Conquering this barricade, the bulls may attack the recent rejection region of 1,987. Jumping above that territory, gold could challenge the crucial 2,000 psychological mark.

In brief, gold has been undergoing a downside correction, eyeing the ascending 200-day SMA around the 1,900 territory. Hence, the future of bullion lies on whether this important threshold will hold as a break below it could trigger a massive decline.