Gold Broke Above $1,280

After almost two months of consolidation Gold finally broke above the seemingly unbreakable resistance at $1,280 and continued moving to the upside, eventually reaching the next resistance at $1,300. The question is whether the move to the upside will continue above that level. $1,300 is a very serious resistance level which becomes even more obvious on the monthly time-frame and it’s unsurprising that Gold has bounced off of it for now. In case it does succeed in breaking above $1,300, its next target would become $1,330, perhaps even $1,340. On the other hand, if Gold starts retracing it could return to $1,280, which would now become a support level and a breakout below $1,280 could lead to a further drop to $1,230.