Gold Formed a Double Bottom

Gold tested the support at $1,305 several times but failed to break below that level and reach $1,300 again, eventually forming a possible double bottom above the support visible on the four-hour time-frame and began moving to the downside. Currently it is testing the resistance at $1,322, which coincides with (MA)89 on the four-hour time-frame again. A possible breakout above the resistance at $1,322 could lead to a further move to the upside towards $1,340 - $1,350. That said, we should keep in mind that later today the FED will announce whether or not they will hike the interest rate, and until that time the market will likely be in consolidation, so a breakout probably won’t occur before that happens.