Gold Finally Bounced Off the Support

 

Gold reached the support at $1,244, which coincides with the (MA)89 indicator on the weekly time-frame and stalled there despite the belief that the move to the downside would continue. After a week of sideways consolidation above that level, which led to the formation of an inverted hammer candlestick on the weekly time-frame again, the precious metal bounced off of the support and started slowly moving to the upside, breaking above the resistance at $1,260. Currently Gold has almost reached the next resistance level at $1,273, which coincides with the (MA)89 indicator on the four-hour time-frame. A possible breakout above that level would likely lead to a further move to the upside towards the next target at $1,285 - $1,290.