My chain is touching part of the rear derailleur. Is it possible to move the derailleur so the chain does not touch it?
This is because the chain is too long. You would shorten the chain to stop it touching the derailleur like this, but you also want to avoid this gear combination of the small chain ring and the small rear cog anyway; it is called cross-chaining and not desirable. In any other gear combination this problem will likely go away because the excess chain length is wrapped around larger cogs.
The only reason not to shorten the chain to the proper length is if it is only just long enough to fit around the big chainring and big rear cog as it is now. This would only come about if incompatible parts had been fitted to the bike, but I would check how slack the chain is (or isn't) in the big-big combo before shortening anything.
If the chain becomes too short there is a much bigger risk of damage by shifting to the wrong gear.