Gold prices are consolidating around the critical 1200 level. Strong resistance is at the 61.8% retracement level of the downleg from 1255.07 to 1131.65 at 1207.71. To the downside there is immediate support at 1193.26, which is the 50% retracement level.
On the daily chart the overall trend is down as prices have been falling from the September 2012 high of 1795.73 to the November 2014 low of 1131.65. A break of this low would accelerate the downtrend to target the 2010 low of 1044.35. The market is below the 200-day and 55-day moving averages, which highlight the bearish market structure. The MACD is below zero indicating bearishness.