Gold bounces from the 200 day EMA

Gold was retracing to the downside from the 1300 zone to break below the 55 day EMA (purple line) until it reached the 200 day EMA (blue line) around the 1266 level. Gold had already bounced once from the 200 day EMA at the beginning of October and on this second visit to the moving average it bounce again to the upside. We could possibly see the formation of a double bottom pattern around the 200 day EMA, which is a bullish reversal pattern. But in order for the double bottom pattern to be confirmed, the price of gold must break above the 1300 level, which is its signal line. For now, gold may stay consolidated, stuck between the 200 day EMA and the 55 day EMA around the 1285 level. On the other hand, if the price manages to break below the 200 day EMA, then gold would have the road clear to fall all the way to the 1204 zone.