A very interesting day in gold yesterday - again the 20DMA proved resistance and the gold market sold off hard in the afternoon, dragged down in a broad based sell off.  However, gold recovered powerfully from support at 1530 despite dollar strength.

This is the fourth time that the 1525-1535 support zone has been tested and held, it is clear that gold is forming a base at this level.

In light of this, we believe our current long position has a very favourable risk reward profile - the downside is limited to 1525 with several hundred points of potential upside.

Gold again failed to break through resistance at the 20DMA and sold off hard yesterday after the PM fix in London. 

There is a solid band of support from 1525-1550 and we would be very surprised to see gold fall below this.  If this support area fails, then the price of gold is heading much lower.  Any drop below 1525 would be an obvious short play.

We expect this level to hold and the basing process in gold to continue and anticipate higher prices in the months to come.

There is little to add to yesterday's commentary, the US markets were closed yesterday for Memorial Day, so the gold market barely moved all day.

The 20DMA is proving to be initial resistance, then 1600 and 1625 will be the next levels to overcome.  Support is initially at 1570 then 1550 with major support at 1520-1530.

Gold has continued to climb this morning and is now coming up against resistance at the 20DMA.  It appears more likely to us that the low is in for this correction after the successful retest last week.

Gold has put in a higher low at 1532 and has risen above the previous swing high of 1578.  The first target is to close above the 20DMA and then 1600 which should act as resistance.

Today's video looks at when we will decide to go long in more detail and the likely placement of our stop.

After threatening to break out above 1580, gold sold off back in to the mid-1550s yesterday and is currently trading around 1565.

The potential "hammer" reversal pattern has now been invalidated due to the lack of follow through buying and at the moment the market is neutral short term and bearish medium term.

Gold appears to be attempting to form a base above 1525 though we are uncertain whether the correction is over yet.  Today's video looks at what we intend to do in a couple of likely scenarios.

A very interesting day yesterday, with gold selling off hard and finding support at 1532, only to finish the day almost unchanged.  This meant our long position was stopped out at break even.

This price action formed a "hammer" on the charts, which is generally a bullish candlestick, particularly as the low was higher than the previous low at 1526.  However, there has been no follow through buying this morning and the market still looks weak so we are waiting on the sidelines for now.

Today's video looks at the action of the past week in more detail and outlines our strategy for taking our next long position.

After finding resistance just below 1600, gold has corrected the recent rally from 1526 and found support at the 61.8% Fib retracement.

We did not expect gold to fall below 1570 and would be very surpirsed to see it fall below 1550, though we can't discount a retest of the lows at 1526

Nevertheless, we consider the low to be in for the correction and the risk reward profile is overwhelmingly in favour of a long position right now.

Should 1525-1520 fail to hold, gold could be headed much lower and we would have to reassess our longer term bullish picture.

Gold is consolidating the gains from Thursday and Friday below $1600, we expect another rally to start shortly.  There is a lot of resistance above and the price has fallen this morning, though we don't expect the price to fall below 1570.

Today's video looks at the resistance levels in more detail, advises on stop placement and our targets for this rally. 

Gold showed good follow through strength on Friday and closed near the high for the week, which suggests to us that a bottom is in and the correction is over.

We expect higher prices this week, however there is a lot of overhead resistance with all of the major moving averages and Fib retracements for the decline above, so we do not expect a quick return to 1800+.

Gold is higher again this morning and, although it is likely we will see a pull back at some point this week, we remain long and anticipate this rally to last for some time.

After gold broke out of the steep downtrend channel it powered higher and our subscribers were alerted to our decision to open a long position at 1555 and where we have placed our stop loss.

Follow through buying this morning indicates that a bottom is in, though there is significant resistance overhead above 1600.

As usual, we will trail our stop up as the price rises to lock in profits.