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Gold flirting with the 200-day SMA
A recovery off the $1240 level has taken gold price back towards the key $1260 zone, and once again the price is testing the 200-day simple moving average (SMA) at $1258.
A breakout above here, combined with the recovery back above the declining trendline, would suggest that the next target on the upside is the November peak at $1308, with some resistance at $1271 and $1281. Sellers would need to break below the $1240 level and create a new lower low to put more weight behind a bearish outlook.
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