Gold Is Consolidating

Gold is at a major support level at $1,250 that it reached in the end of last week which coincides with the (MA)89 indicator on the weekly time-frame. The precious metal has been consolidating sideways above that level for the whole week now and unless the fundamentals today provoke a breakout to the downside or a new move to the upside the consolidation will likely continue until the market closes for the weekend. That said, when a breakout does occur we can likely expect Gold to continue dropping towards the next support level at $1,210, which is (MA)89 on the monthly time-frame. Alternately, a bounce off the support at $1,250 would mean a further move to the upside towards $1,290 - $1,300 again.