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Gold Testing Resistance at 1241.76, Gains Capped

XAUUSD : Daily Chart

Gold is following a rising wedge pattern on the daily chart which signals a bearish trend so it is expected to decline anytime soon paring its gains. There is another falling resistance which will also resist the commodity to rise further. Currently the pair is testing the resistance at 1241.76 and might continue to decline below the rising support trend line of the wedge. If it breaks down from the wedge, the immediate support it may find is at 1204.85.

XAUUSD : 4 Hour Chart

However if we look at the 4 hour chart, the 50 day SMA is moving towards the 200 day SMA signaling that the commodity will continue to follow the uptrend. So it might continue to rise above the resistance at 1241.76 but as we saw on the daily chart the gains are capped there will be a decline.