With the marginal cost of gold production currently pegged right around $1250/ounce (Morgan Stanley Research) it is not surprising that this level has been quite 'sticky' lately, first serving as support and now as resistance:

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Gold_Daily_10.22.2014

After the $70 rally we witnessed in the last three weeks a consolidation between $1230 and $1250 is to be expected. For gold to mount a sustainable rally north of $1250 some significant investment demand will be required, not just the passing of money back and forth between traders that has been the primary driver of price during the past couple of months. A modest pause/pullback over the next several trading sessions would be quite healthy. Such a pause could refresh gold nicely for a November rally (the 2nd most bullish month of the year for gold historically).