Gold Is Retracing

Gold has been moving to the downside for the past three months but ever since it broke out below the support at $1,285 that movement accelerated considerably. That said, the precious metal found some support at $1,237 and bounced off from it after forming a spinning top candlestick on the four-hour time-frame. It is currently testing the resistance at $1,256 and if it breaks out above that level the current retracement will likely continue, its next target being likely at $1,265, which coincides with the (MA)89 indicator on the four-hour time-frame. A breakout above that level could, in turn, lead to a rally towards $1,285 again.