The metal has been rejecting at 50-week SMA for six weeks. Yesterday it had parallel support at $1,240.70. The oversold momentum indicators in the daily chart hold the metal at $1,240 levels, below $1,240.70 level, it will melt up to $1,237.70, $1,231.30 and $1,217-$1,213 levels. The next fall will take place below $1,240 for $1,237.70, $1,325, $1,233, $1,231.30, $1,220 and $1,217-$1,213 levels. The ECB decision will hurt the gold within the next couple of days. We expect the short-term bottom will be placed between $1,230-$1,217.70 levels. Below $1,217, another deep correction towards $1,180 (classic bottom), $1,150 and $1,100-1,070 levels. On the up side, $1,265 will act as the trend change reversal level.

In the daily and H4 charts, the momentum oscillators are witnessing an oversold levels. If the oscillators start working, then the metal can pull back up to $1,245, sustain above $1,245.50 will take the pair towards $1,250 and $1,251.85 and $1,260 levels.

On the down side, sell again below $1,240 for $1,237.70 and $1,231.30 levels.