Gold Pauses Below $1200 per Ounce

Gold (1193.52)

Yesterday gold was trying to recover and push higher in an uneven recovery. It looks like the yellow metal has stumbled just below the $1200 figure and moved lower, please see the above MT 4 daily chart. The technical level at 1200 was also a three week high and it looks like buyers are taking a pause.

We need a daily close above 1212.20 in order for buyers to challenge the congestion area that runs from 1230 to 1237.60. This area is supported by the falling trend line. Should we continue to move lower then we note a support congestion zone from 1178.85 to 1180.85. A break below this area is bearish for a challenge of the technical level at 1161.50.