Gold Is Consolidating Sideways

Gold has been stuck in a relatively wide sideways consolidation between $1,365 and $1,310 since the end of January this year and so far there is no indication that the consolidation will end. The precious metal is now testing the support at $1,310 once again and it will likely bounce off from that level. If that happens Gold will probably start moving to the upside back towards the aforementioned resistance at $1,365. On the other hand, if there is a breakout below the support which also coincides with the (MA)89 indicator on the daily time-frame the precious metal will probably continue falling towards the next support, which is at $1,300, or even below that level.