Gold is trading higher, probably at the start of a higher degree impulse in wave C) or III). If that is the case, then recent correction in wave B) or II) found a base at the 78.6 Fibonacci ratio. A break above the 1241.18 level would suggest higher levels to follow.
Gold Daily Chart
Regarding the 4h view. Gold has turned nicely bullish a month back with clean five waves up from 1120 area, which means that trend has changed from bearish to bullish mode. However, nothing moves in straight line so drop from January highs was not a surprise; a contra-trend move in three waves that can represents wave 2, which in fact already shows signs of completion after a nice leg up on Friday. We however still recommend on a daily close above 1200 before bullish reversal is confirmed.
Gold 4 Hour Chart