Gold Consolidates

Gold has consolidated around the level of $1,220. The precious metal started a downtrend since it reached just a few dollar shy of the psychological $1,300 a month ago. Currently, price is $1,223 and has just gone under the 200SMA, implying that the downtrend might gather new momentum and go further down.

First bear target is the 50% Fibo level at $1,208. As it seems, the psychological $1,200 level is bound to be reached. The event that could shift gears is tomorrow's NFP and Jobs' report data. If they turn out to be positive, then the $1,200 level becomes a probable target for market participants.

Below that, major bear target rests at $1,167. Should this level be reached, Gold would have returned all gains made this year.

Chart: XAU/USD D1