Gold is set to register its largest one-week loss since November. As FXStreet’s Eren Sengezer notes, technicals turn bearish after the weekly decline.

Bearish shift in the technical outlook

“In case next week’s developments point to a further escalation of the conflict, gold should gather strength and start erasing this week’s losses. On the other hand, the precious metal could come under renewed selling pressure if markets remain hopeful of a ceasefire.”

“$1,920 (Fibonacci 50% retracement of the latest uptrend) aligns as the first support. With a daily close below that level, gold is likely to test the $1,890/$1,900 area (Fibonacci 61.8% retracement, psychological level) before extending the decline to $1,880 (50-day SMA).”

“In case buyers manage to lift gold back above $1,950 (Fibonacci 38.2% retracement), next resistances could be seen at $1,975 (February 24 high) and $1,990 (Fibonacci 23.6% retracement).”