Gold price remains in sideways short-term consolidation above the $1,240 support level. I expect soon to see a break out. I give more chances to see an upward break out towards $1,264 and then towards $1,280.
Gold price is below Ichimoku cloud resistance and in down trend. However I believe it is oversold and a break out above $1,250 will signal a bounce starting towards the 38% retracement first and secondly towards the 61.8% retracement. A pull back should soon be expected in Gold price. However if price breaks below $1,240, we should see price move towards $1,230-20.
I still believe that bears should either take profits or lower their stops to protect their positions. If there will be any more downside the potential is not big. I do not see Gold price make a move lower than $1,200. I believe the support of the 76.4% Fibonacci retracement at $1,230 will provide strong support.
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