The price of gold on the spot market after strong decline that took place recently, reached the key support at 1250.00. The following daily chart shows that the price began to consolidate just above the support.
Looking at on H1 chart, we see that the consolidation seen on D1 chart, the triangle pattern is created. Right now the price is at its lower arm, and furthermore is getting closer to the tip (apex) of the formation.
At this point we can expect a reflection of an upper arm or breaking the support and movement to a level of 1250.00. Larger declines, in line with the bearish momentum can be activated only after breaking the level of 1250.00 and lows of October 7th at 1241.25.
In turn, the effective break of the upper arm of the triangle may forecast a correction to the local resistance near the level of 1275.00.