Gold Is Testing the Support at $1,221

After Gold bounced off from the resistance at $1,263 the precious metal started moving to the downside and, unsurprisingly, it finally reached the support at $1,221, which coincides with the (MA)89 indicator on the daily time-frame. The question is whether it will be able to break out below that level to continue moving to the downside. If that does happen we can likely expect a further drop towards the next support level at $1,205 – $1,200. On the other hand, if Gold bounces off from $1,221, there will probably be a new move to the upside, first towards $1,250, and then a breakout above that level in turn will likely lead to a further move north towards the previous high at $1,263.