Gold Bounced off from $1,245

Gold has been gradually moving to the upside for well over a week now, but it appears that the precious metal has found a strong resistance at $1,245, which coincides with the (MA)89 indicator on the daily time-frame. Gold formed a clear hanging man candlestick on the same time-frame yesterday and it began slowly moving to the downside, bouncing off from the aforementioned resistance at $1,245. For now Gold is testing the support at $1,235, but a breakout below that level could lead to a further move to the downside. Should that happen, the closest target will likely be around $1,200 again. On the other hand, should Gold continue rising, the first target to the upside will probably be the previous high at $1,258.