Gold tested the support area at 1640 last night and held to potentially form a "double bottom", however it appears to us that we are forming a "flat bottomed triangle" that suggests further downside is coming.

The failure of gold to rebound after breaking down out of the triangle correction on Monday is also suggestive that further declines can be expected and with RSI on the daily chart not yet in the oversold zone there is room for the market to fall further and test key support at 1625 at least.

Oil continues to show strength, however the dollar appears to be attempting to rally after testing key support at 79 a couple of weeks ago.

Today's video looks at the last couple of trading sessions and our strategy for our next trade.

Gold continued to sell off yesterday before eventually finding support at 1639.  The market then formed a "bullish falling wedge" on the 1 hour chart and we alerted our subscribers to close their short positions at 1643.

Gold subsequently rallied in the afternoon session, reaching 1653 before finding resistance.  The market again found resistance at that level overnight to potentially form a "double top" and is currently trading around 1647.

The failure of the triangle pattern is a very bearish sign and we expect further downside after a short relief rally.  We would be surprised if we do not test the spike low at 1625 - if this level gives way, then much lower prices become likely.

Oil remains very strong and the dollar weak, however gold's normal relationship with these two markets has become decoupled recently.  Whenever this has happened in the past, the usual correlations re-established themselves in time.

Today's video looks at yesterday's price action in more detail and our price targets for the recovery rally.

With Chinese buyers absent this week, we warned yesterday that the risk of a sell off was significantly elevated.   Our fears were realised as gold broke down through the bottom boundary of the triangle consolidation and fell hard, tumbling through support at 1660 and 1653 and eventually fining support at 1644.

The breakdown of the triangle pattern is a very bearish development and we can expect more selling before finding strong support and rallying.

Our subscribers were alerted to the pending sell off early yesterday morning and were able to position themselves to profit from the decline.

Today's video looks at our targets for the decline and our strategy for our current trade.

After testing the bottom boundary of the triangle pattern on Friday, gold bounced weakly higher, however the price is again testing the bottom boundary this morning and is in danger of breaking down out of the consolidation pattern.

The absence of Chinese buyers due to the New Year celebrations this week removes a major supporting factor for the gold market and significantly heightens the risk of a sell off.

Technically, gold remains below the key 200 DMA and has closed below it for the past three sessions, and is also below the 20 and 50 DMAs.  In our view, the market looks weak and vulnerable to a breakdown from the triangle pattern.

Today's video looks at the "big picture" and the triangle pattern in more detail.

Whilst the ECB rate decision and jobless claims barely caused a ripple in the gold market yesterday afternoon, the subsequent press conference by Mario Draghi caused a big EUR sell off and corresponding dollar rally.  This sent gold tumbling, before the market found support at the lower boundary of the triangle pattern at 1663 and bounced all the way back up to a high for the day of 1683.

In trading action typical of the last week, gold then sold off again down to 1667, where it stabilised and is currently trading around 1670.

This choppy, volatile price action is very difficult to trade, we are more than happy to spend our time studying the gold market online whilst we wait for a tradeable trend to emerge.  This will happen when we break decisively out of the triangle pattern.

Today's video looks at the triangle pattern in more detail and confirms our strategy and anticipated entry points for our next trade.

In a quiet day of trading yesterday, gold continued to oscillate within the triangle consolidation.  The upper boundary now stands at 1690 and the lower boundary is at 1666.

The range continues to narrow as the triangle moves towards its apex, coiling and building momentum for the next big move.  A break out of the triangle, either up or down, should see a strong trend emerge.

The dollar remains weak, unable to sustain a rally to 80 or higher.  A break of 79 portends much lower prices ahead.  Oil remains strong, though is currently correcting the powerful rally up to $98 a barrel.  The strength in oil has not yet been reflected in gold, though we expect it soon will be.

Other online commentators appear to be split between bearish and bullish at present, reflecting the finely balanced market and battle for supremacy within the triangle.

The ECB rate decision and jobless claims data from the US could move the markets today.

Today's video looks at the triangle consolidation in more detail, as well as the "big picture" and our thoughts on why we think the next move will be up.

In volatile intraday trading yesterday, gold finished the day around unchanged at 1675, after surging as high as 1686 on two separate occasions and falling to 1666, to score a doji candlestick on the daily chart.

This is typical price behaviour in a triangle consolidation, with both bulls and bears battling for supremacy, becoming frustrated and whipped out of their positions.  However, the triangle is coming towards its apex and the next trending move will begin on a break of the triangle (the upper and lower boundaries are currently at 1690 and 1664 respectively).

Whilst rumours persist online of supply concerns in silver and manipulation on a grand scale in gold, we continue to trade successfully on what the charts tell us - our method combining Fibonacci retracements, candlestick analysis and Elliott Wave theory does not rely on news, events or online speculation, we consider all of the relevant information that affects the price of gold to be distilled into the chart.

Today's video looks at the triangle pattern in more detail and yesterday's wild intraday trading in gold.

Gold bounced around in a triangle consolidation yesterday, within a larger triangle pattern that is moving towards its apex in the next couple of weeks.

We expect the breakout from this triangle to be a major move, though it is unclear at present whether this move will be up or down.  Nevertheless, we will position ourselves accordingly on any breakout to gain whether the price moves higher or lower.

Oil appears to be starting a correction after a powerful rally and the dollar seems to be attempting to form a rally as well - these factors are both bearish for gold in the short term.

If gold can break above the 30 Jan high at 1683, we can expect a test of major resistance at 1695-1700.  A break of 1660 would suggesty a test of 1650 and possibly a move to the bottom of the downtrend channel at

In a volatile day of trading yesterday, gold shot higher on the release of the US non Farm Payrolls number, ostensibly due to the increase in the unemployment rate to 7.9%, where a fall to 7.7% was expected.  The jobs number itself came in around about the expected level, though the previous months' numbers were revised sharply higher.

However, on reflection, and with the release of some strong economic data later in the session, gold fell all the way back to 1660 before finding support and moving higher, closing around 1667.

The price action on Friday illustrates perfectly the sensitivity of the market to economic data at this time, particularly in relation to employment, and also the danger of trading before, during and after data releases - anyone trading gold on Friday could have been fleeced, whether long or short.

It is almost always best to sit on the sidelines and wait until the dust settles after a highly anticipated news item is released.  We are professional traders, not gamblers, and attempting to guess market moves on data releases is a sure way to disaster.

As so often happens after a "knee jerk" reaction move, gold fully retraced Wednesday's GDP-fuelled price jump yesterday and is now trading around 1665, the area it was at before the GDP announcement.

The market is now focussed on the US jobs number, to be released at 1.30pm UK time.  As one of the stated aims of the Fed is an unemployment rate of 6.5%, the jobs report has taken on even greater significance for gold, as an improving employment picture will signal an early end to quantitative easing - conversely a weak jobs number will suggest further stimulus or a continuance of the quantitative easing programme at least.

We commented yesterday that we were expecting a Wave C decline from 1683 and that appears to be what we are seeing.  The market found support at 1657 yesterday, though the bounce since has been tepid and shallow - we therefore expect further declines before this ABC correction is over and a meaningful rally can begin.

We would ideally like to see a spike low and strong recovery - today's video looks at our targets for this spike low and our strategy for our next trade.