Gold Backed by Support

Market participants are now having a difficult battle in attempts to win over the trend. The precious metal is seen to consolidate around the $1,209 level. The level also corresponds to the lower trendline on the medium term perspective. Also, the 50% Fibo level is exactly where price is now - $1,209. 

This means that the odds are in favor of the bulls. However, fundamentals show that the US economy is advancing and that lowers the interest in owning Gold. This is to show that the Gold market is at a make it or break it level. 

If price breaks the support and falls below the psychological level of $1,200, Gold bugs might retreat and give way to the depreciation of the precious metal. If the levels hold, this would be a strong start of the uptrend with major bear target in the range of $1,330-$1,350.

Chart: XAU/USD H4