Gold Price Analysis: Pares early losses, still in the red below $1650 level

Gold extended previous day's intraday retracement slide from multi-year tops and witnessed some follow-through long-unwinding trade on Tuesday.

The pullback stalled near the 38.2% Fibonacci level of the $1548-$1689 recent upsurge, albeit bulls failed to capitalize on the attempted intraday bounce.

Meanwhile, technical indicators on the 1-hourly chart have already drifted into the negative territory and been losing positive traction on the 4-hourly chart.

Moreover, oscillators on the daily chart – though have corrected from recent highs – are still flashing slightly overbought conditions, suggesting further downfall.

However, it will be prudent to wait for some strong follow-through selling below the daily low level of $1633 before positioning for an extension of the corrective slide.

The commodity might then accelerate the fall further towards 50% Fibo. level, around the $1617 region, en-route the $1600 mark – coinciding with 61.8% Fibo. level.

On the flip side, the $1656 region (23.6% Fibo.) now seems to have emerged as an immediate resistance, which if cleared, might negate prospects for any further weakness.

Gold 4-hourly chart