Gold continues retracing

Gold has been falling during the las few weeks as shown on the daily chart and drops below its 200 week EMA around the 1256 level. The bearish momentum accelerates below the 200 week EMA and at the moment it is getting closer to the 200 day EMA around the 1239 level. The 200 day EMA could act as a support for gold and its price may try to bounce to the upside from there. However the zone between the 200 week EMA at the 1256 level and the 200 day EMA at the 1239 level has been a congestion area in the past, therefore, it is possible for the price of gold to stay stuck in this zone, oscillating back and forth without taking a clear direction. In case gold breaks below the 200 day EMA then the commodity may have the road clear to go and visit the 1200 level, where we can see on the chart that the price made a double bottom formation causing it to stall there. To the upside, the most relevant resistance zone is at the 1300 level, where it has made its most recent high.