Gold is hovering around $1,231 consolidating modest losses for the day. The yellow metal is falling for the third day in a row as it continues to move further away from 1-year highs that reached last week at $1,282.90. During the Asian session, it bottomed at $1,225.80 the lowest level since March 2. Afterward bounced to the upside but near $1,240 lost strength and dropped back toward $1,230. XAU/USD technical outlook According to Valeria Bednarik, Chief Analyst at FXStreet, the gold daily chart, set a lower high and a lower low, while extending below its 20 SMA for the first time since early January, suggesting the downward move may extend during the upcoming days. “In the same chart, the technical indicators continue heading south around their mid-lines, not yet confirming a downward continuation.” On a shorter time frame, in 4-hour chart, Bednarik, affirms that it presents an increasingly bearish potential, with the 20-SMA heading south, “offering a dynamic resistance around 1,250,00, while the technical indicators have lost their upward potential within bearish territory, and after bouncing from oversold levels, supporting some further declines particularly on a break below the 1,220.00 region.” For more information, read our latest forex news.