Gold prices completed two consecutive bearish days in the preceding week and retained a negative correction mode, following the pullback on the five-month high of 1250.44.
The yellow metal holds beneath the 20- and 40-simple moving averages (SMAs) in the 4-hour chart, however, the momentum indicators are turning slightly higher. The RSI indicator is pointing up in the bearish zone, while the %K line of the stochastic oscillator posted a bullish crossover with the %D line before entering the overbought zone.
The bearish movement could push prices until the immediate 1233 support barrier. Then the metal could challenge the 23.6% Fibonacci retracement level of the upward movement from 1160 to 1250.44, around 1229. If the price fails to hold above this region, it could meet support at the 38.2% Fibonacci, which holds near the 1216.53 obstacle.
On the flipside, upside movements could send prices towards the 20-SMA near 1241.61 and then at the flat 40-SMA around 1243. A break higher, could reach the five-month high of 1250.44, taken from the peak on December 10.
Concluding, gold prices remain above the rising trend line, which has been holding since August 16 but is in progress to post a negative retracement.
