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Gold (XAU/USD) Could be Finding a Support in 1250-1260

Gold $XAUUSD has retreated from a high on the year around 1357 to almost 1260. The daily chart shows that this swing is essentially bringing price down from a rising channel resistance to channel support.

XAU/USD Daily Chart

(click to enlarge)

Support at 1250-1260:
- We can see that price around 1260 is right around the 200-day simple moving average.
- There is also a channel support around 1250. 
- The RSI has been floating around 40. If the prevailing trend since July is going to maintain momentum, it should indeed hold above 40.
- A break below 1240 would invalidate the bullish outlook, and prompt re-evaluation.