Gold Is Still Testing the Support at $1,312

Ever since Gold formed its double top on the four-hour time-frame and then the hanging man candlestick on the daily time-frame below the resistance at $1,375 it has been moving to the downside, but in the past week or so it has been forming a very frustrating tight range above that support at $1,312. Thankfully, later today we can expect major fundamentals – namely a FOMC statement and a Federal Funds rate announcement. Such fundamentals are usually what it takes to break a range like this. Depending on the news Gold could break below the support at $1,312, as well as the one at $1,300 and should that happen I expect a further move to the downside towards $1,276, which is (MA)89 on the daily time-frame. 

On the other hand, if Gold starts climbing it will likely test the resistance at $1,337 and if it breaks above that level it could once again reach the previous high at $1,375.