The precious metal is facing a strong pullback, the price managed to break the support level at 23.6% and 38.2% Fibonacci retracement and it's very close to the 50% support level at $1,796.
The Bollinger bands are very wide and we expect high volatility for the pair in the short term, the price is currently trading at a very fair price level in reference to the bands, this will allow investors to buy at a lower price in hopes that inflation fears continue in the midterm, creating a new surge for the safe-haven metal.
The relative strength index is at 46%, this will allow the pair to move freely in either direction, we will have to wait and see if the support level at $1,797 is strong enough to hold the drop and revert the current downtrend.
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