Gold price as we expected from our previous analysis is pulling back towards $1,210 and the 61.8% Fibonacci retracement level. This is our minimum expectations and price is following the path lower. Short-term trend is bearish as long as price is below $1,230.
Red rectangle - short-term major resistance
Green line - important trend line support
Gold price reversed as expected from $1,230 and is now challenging short-term support. As long as price is above the green trend line support, bulls will continue to hope for a new up trend towards $1,260-70. For this scenario to be confirmed we need a break above $1,230 and most importantly a break above the October highs. On the other hand bears want to see price break below $1,202 where we find the green trend line support and most importantly below $1,196. If this happens, we should expect Gold to continue lower towards $1,100 or even lower.
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