Gold has advanced above the 23.6% Fibonacci retracement level of the upward movement from 1160 to 1243, near 1223, while it currently stands above the 20- and 40-simple moving averages (SMAs) in the 4-hour chart. However, the price has held in a neutral mode over the last week, after it jumps above the 1220 barrier.
Zooming to the indicators, the RSI is moving higher in the positive area as well as the stochastic oscillator is approaching the overbought zone.
The next target to watch to the upside is the 1230 resistance, taken from the highs on November 21, while even higher the area within 1236 – 1239 would be strong resistance for the bulls. Rising above this region the yellow metal could hit the three-month high of 1243.
A move to the downside would turn the attention to the immediate support level of 1220, penetrating the 23.6% Fibonacci mark. Further losses would push the price until the 38.2% Fibonacci of 1211, before meeting again the rising trend line in the short-term.
Overall, gold prices remain above the rising trend line, which has been holding since August 16.
