Lower trend line on hourly slows the fall
The 1203.87 is lower trend line on the gold hourly chart. Support buyers leaned against the level on the first test (the low reached 1204.10). The price has quickly moved up about $3 off the lows. This support level, along with the 1200.00 level, should give traders cause for pause (at least temporarily).
Earlier today, the 100 day MA was broken at the 1217.00 area, but momentum selling had started well before that level (see blue horizontal line on the 5 minute chart below).
The last trend leg down (see chart below) has the 1207.77 to 1208.82 as the 38.2-50% of the move down as close resistance (see yellow area in the chart below). IF this correction zone can hold, the sellers remain in complete control. Move above and there could be a further corrective move toward the 1212.40 area (see chart below).
