Gold Bounced Off from $1,291

Gold made yet another attempt to break out above the resistance around $1,290 - $1,295 – the third one since April this year, but it was once again unsuccessful. After forming an impressive spinning top candlestick on the four-hour time-frame at $1,291 the precious metal moved to the downside again and reached the support at $1,267, which coincides with the (MA)89 indicator on the same four-hour time-frame. Currently Gold is still testing that support. A breakout below that level will likely lead to a further move to the downside towards the next possible support level, which is at $1,250 and coincides with the (MA)89 indicator on the daily time-frame. If the precious metal succeeds in breaking out below that support as well it could drop back to $1,200.