Investing.com - Gold could retreat back to $1,200 an ounce on technical and fundamental considerations.
The precious metal has rallied from its December low of $1,122.75 but there seems to be limited further upside potential.
RSI Oscillator is currently pointing to overbought levels, while prices are close to a reversal point at the 61.8% Fibonacci level at $1,280.10.
That level also coincides with the possible end of the potential ABCD pattern.
Gold also faces mounting pressure for a rise in short-term interest rates.
FOMC members of late have been talking up the rationale for a March interest rate hike.
The scenario is building for gold to form new lows well below the $1,046 mark in the medium term.
In the short run, gold could move toward the $1,280 mark before a breakout failure sends it sharply lower toward $1,200 in a matter of weeks.