Gold Is Falling

Gold was caught in a tight range between $1,360 and $1,330 for over two weeks, but today it finally broke below the aforementioned support at $1,330 and continued moving to the downside. Gold is currently testing the support at $1,223, and a breakout below that level will likely lead to a further drop towards the previous low at $1,310. More importantly, if Gold drops below that level it will probably continue falling towards $1,300, which coincides with (MA)89 on the daily time-frame and is a very serious level of support. 

All that said, I don’t think that we can say for certain yet that the overall bullish trend is over, although we will likely see a more significant retracement before Gold continues moving to the upside.