Gold Price Analysis: Down 0.40% in Asia, $1,980 is key support

• Gold has pulled back by $10 from session highs. 
• The 4-hour chart is beginning to lean bearish.

Gold is trading near $1,993 at press time, representing a 0.4% decline on the day. The yellow metal faced rejection at $2,015 on Tuesday. 

The 4-hour chart relative strength index has dived out of an ascending/bullish trendline. As such, the metal risks extending losses to $1,980. That level is currently housing the trendline rising from Aug. 12 and Aug. 16 lows. 

A break below that trendline support would imply an end of the recovery from the Aug. 12 low of $1,863 and could cause some buyers to exit the market, leading to a deeper decline to $1,950. A move above $2,015 is needed to restore the immediate bullish view. 

4-hour chart

Trend: Bearish below $1,980

Technical levels