Gold Technical Analysis: Descending trend-channel points to an extension of the weakening trend

   •  The precious metal kept losing ground through the mid-European session on Tuesday and touched a 1-1/2 week low level, around $1192 in the latest hour.

   •  The fact that the commodity has been trending lower alongside a downward sloping trend channel on the 1-hourly chart support prospects for further downside. 

   •  The commodity's overnight rejection from 100-hour SMA and bearish daily technical indicators add credence to the negative outlook.

   •  However, technical indicators on the 1-hourly chart have now moved on the verge of falling into oversold territory and thus, warrant some consolidation. 

Gold 1-hourly chart

Spot Rate: $1193.71
Daily Low: $1191.74
Daily High: $1202.03
Trend: Bearish

Resistance
R1: $1200 (psychological round figure mark)
R2: $1204.97 (R1 daily pivot-point)
R3: $1209.46 (50-day SMA)

Support
S1: $1189.75 (descending trend-channel support)
S2: $1185.50 (S2 weekly pivot-point)
S3: $1174.06 (recent daily closing low set on Aug. 16)