Gold Broke Out Below $1,235

The rather impressive move to the downside that began after Gold bounced off from $1,295 continued this week and the precious metal not only reached the support levels at $1,241 and $1,235, which coincide with the (MA)89 indicator respectively on the daily and weekly time-frames, but it broke out below them with ease. Currently Gold is testing the support at $1,225 and it is very likely that it will break out below it as well. Such a breakout will probably lead to a further move to the downside towards the next support at $1,200. That said, the second tour of the presidential elections in France on 7th May, i.e. on Sunday, may also have an effect on it and that effect will depend on the outcome of the elections.