Gold is sliding downwards towards 1,280-70 and is reaching important support levels that could change the intermediate and long-term trend. The prices are moving downwards in an impulsive pattern and the decline has retraced more than the 76.4% of the 1,250-1,360 rise. This is not a bullish sign. However, confirmation of the bearish scenario will come with the break of 1,250$-60 neckline.
For the short-term trend to change upwards, the prices must break above the resistance levels, shown in the chart above. As long as the prices trade below the green downward sloping trend line, we remain bearish.
The daily chart shows that the prices are near important support and this is the area where we can see an upward move starting. If support fails, expect 1,250 to be broken and the prices push lower towards 1,200. A break above 1,300 could make us to buy a small position with a strategy to add above 1,325. Target is in the area 1,360-1,400. If resistance levels are not broken, then new lows are the targets.