XAU/USD technical analysis: Gold's upside recovery was capped by the $1,226 level

Gold price faced a solid resistance near the $1,229 and $1,230 resistance levels against the US Dollar. The price declined recently below a major bullish trend line with support at $1,227 on the hourly chart, and traded towards the $1,220 support where buyers emerged.

Later, the price started an upside correction and moved above the $1,224 level and the 50% Fib retracement level of the last decline from the $1,228 high to $1,220 low.

However, the upside recovery was capped by the $1,226 level and the 50 hourly simple moving average. Therefore, there could be a downside correction towards $1,224 before the price makes another attempt to clear the $1,226 resistance level. The main resistance on the upside remains $1,230, above which the price could trade towards $1,240.

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