Gold was under pressure in early trading yesterday, as options expiry related movements saw the price fall as far as 1591 before finding support.

In the afternoon, gold moved sharply higher, on the back of this successful hold of the 1590-1591 support area, apprehension related to the reopening of Cypriot banks today and traders opening new June positions in gold.

Gold made a high of 1608 and stabilised well above 1600, holding the gains to close around 1605.  This morning, gold has held the gains and looks poised to move higher ahead of the long Easter weekend.  However, we may see further options expiry related movements and some volatility ahead of the extended holiday.

Oil continues to move higher, trading at almost $97 - this will be supportive for gold as it will have the effect of stifling the economic recovery and stoking inflation fears.  The dollar is trading above 83, though gold still has very little correlation with the dollar at the moment.

Today's video for subscribers looks at yesterday's trading in more detail and our strategy for our next trade.

In volatile trading within a narrow range yesterday, gold closed at 1600 after making a high of 1606 and finding support at 1594.  The continued strength in equities and the dollar is tempering investment demand for gold and the resolution of the Cyprus situation has reduced the demand for gold as a "safe haven" asset.

Oil is moving sharply higher, trading above $96 a barrel for the first time since February.  If crude continues to move higher, this will spark inflation fears and also worries over the fragile economic recovery, which should be a supporting factor for gold.

As long as an environment of negative real interest rates (nominal interest rate less inflation) exists, gold will continue to be supported and see investment demand.  We don't see this changing in the foreseeable future.

Gold has been trading in a range since mid-February, with 1617-1620 at the top of the range and 1554-1560 at the bottom.  The yellow metal is currently trading in the middle of the range - we await a breakout one way or the other that should be a strong tradeable move.

Today's video for subscribers looks at yesterday's trading in more detail and our strategy for our next trade.

We commented to our subscribers that with options expiry yesterday, we expected the price of gold to close at or around 1600, thereby seeing the 1600 calls and puts expire worthless.

Unsurprisingly, this is exactly what happened - gold sold off all morning, finding support at 1590 before rebounding to close the COMEX session at 1604, seeing all of the 1600 puts expire worthless and the 1600 calls expire with a small payout.

We continue to form a series of higher lows and higher highs as gold climbs slowly but steadily higher.  A move above 1620 will confirm that an intermediate bottom is in which should see shorts covering their positions and new longs enter the market.

On the downside, the "hammer" bottoms provide well defined support at 1590, 1577 and 1560, as well as key support at 1554.  A move below this level would suggest further downside and a retest of major bull markt support at 1525-1530.

Oil continues to move higher and is now trading around $95, though equities appear to be forming a top.  A reversal in the rally in equities would be supportive for gold, as investment capital has recently been diverted away from gold into equities.

Today's video for subscribers looks at yesterday's trading action in more detail and our strategy for our next trade.

The resolution of the Cyprus situation over the weekend has seen a muted reaction in both gold and equities, with gold trading around 1607.

With options expiry today in April gold, we expect the price to finish the COMEX session at or around 1600, as this would see the 1600 puts and calls expire worthless, the ideal result for the options writers, i.e. the major investment banks.

The trading could be volatile today, with wild swings both up and down as the options expiry gyrations play out.

In addition, any further developments with regard to the Cyprus situation could move the markets, though this particular event appears to have run its course for now.

We are still watching 1620 as key resistance and 1554 as key support - today's video for subscribers looks at our strategy for our next trade.

Gold posted a solid up day yesterday, though the market failed to test the key 1620 level and was held in check by the up trend channel line.

This morning gold is under pressure, we suspect due to a few disappointed longs cashing out after failing to take out 1620 and perhaps a bit of selling prior to options expiry.

The Cyprus situation appears to have calmed down for now, though the problems in the eurozone haven't even begun to be resolved and can flare up at any time.

We would not be surprised to see the gold price capped below 1600 on Monday due to options expiry in April gold, thereby seeing all of the 1600 calls expire worthless.

The dollar continues to exhibit strength and is holding above 82.5, whilst oil is having trouble moving higher than the $93 area.  Equities are showing a little strength this morning, again capping interest in alternative investments such as gold.

Today's video for subscribers looks at the current position from the perspective of both bulls and bears and outlines our strategy for our next trade.

The FOMC meeting was a non-event yesterday, with nothing new announced to excite the markets.  Gold bounced around in a narrow range between 1605 and 1615 before the announcement and dropped to 1600 immediately after the release of the statement, before finding support and rebounding to close around 1606.

Although the market was a few dollars lower on the day, crucially for the bulls 1600 held as support and the pattern of higher lows and higher highs remained intact.

The next target for the bulls is to close above 1620, though the recent rally has been hesitant and slow going and the effect of the Cyprus situation appears to have faded away for now at least.  However, the RSI on the daily chart is nowhere near overbought and leaves plenty of upside potential, if the bulls can find the confidence to continue their progress.

The bears will take heart from the bull's inability to test 1620, the weakening RSI on the 4 hour chart and the fact that the RSI on the daily chart has worked off the extreme oversold condition without making much headway to the upside.

A break below 1600 will embolden the bears and may see an extended sell off back towards 1555-1560.

Today's video for subscribers looks at yesterday's action in more detail and discusses the current market conditions.

Gold dropped to retest 1600 at the COMEX open yesterday, before rebounding to rally steadily for the rest of the day, finishing the session at around 1613.

These gains have been largely held overnight, with the current price around 1611.  All eyes are now fixed on the FOMC statement that will be released at 6pm UK time, following the 2 day Fed meeting.

Investors will be looking for clues indicating the future of Quantitative Easing and other stimulus measures and the release of the statement could have a major impact on the gold price, though history tells us that any "knee jerk" move tends to be short lived.  We expect subdued trading today as participants await this key announcement.

The next target for the bulls is 1620, a move above this level will confirm that a bottom is in, leading to shorts covering and new longs entering the market, potentially igniting a strong upwards move.

Today's video for subscribers looks at yesterday's trading in more detail and potential resistance levels above.

After hitting a high of 1611 at the top of the up trend channel yesterday following the Cyprus news, gold has dropped back a little to currently trade around 1603.

The bulls will be encouraged by the close above 1600 and the ability to hold onto this level as the markets digest the Cyprus situation.  Equities recovered strongly from the overnight panic lows and the dollar has continued to benefit, the bulls will gain further confidence from this.

Oil also recovered strongly after falling sharply with other commodities yesterday and is now trading around $94 a barrel.  This should support gold further, though the usual correlation between gold and oil has not been apparent for some time now.

The next target for the bulls is 1620 - if gold can break through this resistance level, the bottom will be confirmed and the shorts will start to run for cover.  Momentum traders will start to take long positions as well, so a decisive break of 1620 should see a strong rally develop.

Support can be found at 1591, 1577 and 1560, though a break of 1591 will bring back the prospect of a retest of key support at 1554-1560.

Today's video for subscribers looks at the key resistance levels above and our strategy for our current trade.

We sent an alert to subscribers yesterday following the shock news out of Cyprus on Saturday that the Government would be confiscating up to 10% of all bank deposits as part of the agreed EU bailout, in an outrageous move that could cause serious damage to confidence in the European banking system.

The alert commented that we expected the Euro to sell off hard today and the Dollar and gold to benefit as "safe haven" assets.

This is precisely what has happened this morning, though gold's gains have been capped somewhat by the surging dollar.  Equities are also selling off as the markets digest the unprecedented news and its wider impact on other EU countries and the Euro currency.

Gold hit a high of 1609 overnight, finding resistance at the top of an uptrend channel and is currently trading around 1600.  The bulls will want to see a close above 1600, with resistance at 1620 in their sights.

A close above 1620 would be seen as confirmation that a major intermediate bottom was in and would likely see the shorts scrambling to exit their positions.

This could be the turning point we have been waiting for, with equities due a significant correction and gold forming a bottom.

Today's video for subscribers looks at the overnight trading action and our strategy for our current trade.

Gold sold off after making a new high of 1599 after the release of yet more postive US economic data.

However, in another positive development for the bulls, the market found support at 1577 and, in a repeat of Friday's price action, bounced strongly to end the day above unchanged at 1592 and form a bullish "hammer" candlestick on the daily chart.

The price action continues to suggest that sentiment in gold is tilting back towards a "buy the dips" mentality, indicative of a bull trend.  This is in contrast to the "sell the rallies" sentiment that has prevailed for the past 5 months.

The bulls will want to see a strong showing today to form a solid green candlestick on the weekly chart and set the market up for further gains next week.  The confidence is returning to the bulls after a long correction, with the attitude being "if the recent strong data from the US can't break the 1550-1560 support zone, what will?"

Today's video for subscribers looks at yesterday's trading in more detail and our thoughts on where the market is headed next week.