Gold formed a "hammer" candlestick on the charts yesterday, finding support at the 23.6% Fib retracement of the rally at 1614 and bouncing back above 1620 to end the trading day.

Gold has now spent a couple of days above the downtrend channel/triangle pattern and another day holding above here should see some shorts start to cover their positions and the price rise accordingly.

We might see quiet trading today as the markets anticipate the outcome of the FOMC meeting, a statement will be made tomorrow evening which traders will scour for evidence of further QE, if nothing specific is announced.

Our view is that no further QE will be announced this time, however the FOMC will continue to make the right noises  about "using whatever measures are necessary" to stimulate the economy and we can expect further stimulus to be announced next month.

There is not a great deal of expectation of any significant announcements this time, so the response may be muted.

Gold made it four up days in a row on Friday for the first time in 6 weeks and hit a high of 1629.  We identified 1625-1630 as a potential resistance zone and it has proved to be the case.

Although the market is in a shallow corrective retrace this morning, we expect the rally to resume shortly without a significant pullback.

Once the 1630 area has been taken out, the 200 DMA is the next target, followed by the upper boundary of the downtrend channel.  Above this, the price should accelerate as momentum traders enter the market and shorts scramble to cover their positions.

Gold continued to move higher yesterday in follow through buying from Wednesday.  Yesterday's high was 1622 and the market has held most of the gains overnight and is moving higher this morning.

The market appears to be adjusting to a "buy the dips" mentality from the "sell the rallies" mindset of the past few months.

It is still very early days in this rally but we expect to see much higher prices, particularly if the market can manage to break out of the large triangle correction from September 2011 (currently the upper boundary is at 1680).

Today's video looks at resistance levels and potential targets for the rally, as well as looking at how a breakout from a triangle often pans out.

We have commented in our videos for the last couple of days how resilient gold has been in the face of US dollar strength and falling equity and commodity prices.

Yesterday we saw gold rise impressively on the back of a bounce in equities and commodities and a falling dollar.  The market breezed through a number of resistance levels and is now holding above the 10, 20, 50 and 100 DMA and appears to be breaking out of the intermediate downtrend channel.

Gold has held onto these gains overnight and appears posied to move higher.  We need to see follow through buying to confirm the breakout and are always wary of a "fakeout" move.

Today's video looks at potential levels of resistance for the rally and price targets.

We have commented in our videos for the last couple of days how resilient gold has been in the face of US dollar strength and falling equity and commodity prices.

Yesterday we saw gold rise impressively on the back of a bounce in equities and commodities and a falling dollar.  The market breezed through a number of resistance levels and is now holding above the 10, 20, 50 and 100 DMA and appears to be breaking out of the intermeidate downtrend channel.

Gold has held onto these gains overnight and appears posied to move higher.  We need to see follow through buying to confirm the breakout and are always wary of a "fakeout" move.

Today's video looks at potential levels of resistance for the rally and price targets.

Gold continues to trade in a narrowing triangle pattern within the larger flat bottomed triangle correction from September 2011.

Yesterday the market found resistance in the mid-1580s and support at 1569, though today has hit 1590 with the 20 DMA again providing some resistance.  With the 50 DMA and 1600 round number above as well as previous swing highs, there is still a lot of resistance for the market to overcome, especially in the face of falling equities and oil and a rising dollar.

However, gold has held up remarkably well over the last few trading sessions, even though fresh buying power is absent.

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

How's that for a fence-sitting, bet-hedging headline!

Whilst we firmly believe that the longer term position remains bullish, we can also see that right now the market is positioning itself for a potential break to the downside which will reap rewards for those taking short positions.

Many fund managers and analysts agree with our view of the long-term - read the two articles below to see why:

Although this post was originally uploaded over a week ago, it still holds true - we are still waiting for the market to make its mind up one way or the other.

We've been getting quite a lot of emails from our subscribers asking what our next move is going to be and when we are likely to re-enter the market. As our trading history shows, we avoid "over-trading" and entering the market for the sake of it. Right now the gold market is going through a period where it is struggling to find a direction and is trading a very tight $30 range - but it could break out at any time.

This is exactly the time to sit tight and hold on to your money - trying to scalp during this period is just gambling in our opinion and we don't advise it. We make our money by picking winning trades which we ride out as far as possible, and cutting our losses on trades which go against us.

As soon as there is some action worth trading, we'll be on it and will let you all know...meanwhile, enjoy the sunshine (it is shining here in the UK anyway), relax and keep your eye out for our next update!

In another choppy day of trading, gold sold off from the start yesterday, falling along with other risk assets and finding support at 1563, before recovering impressively to end the day around 1575 where it remains now.

The 10 DMA proved to be resistance today, as the other MAs have over the last couple of weeks and we remain within a narrow trading range which is getting narrower all the time, coiling for a breakout one way or another.

This action could continue for many weeks, though a breakout could occur at any time now.  We await the next move.

For the last three or four trading sessions gold has found resistance at either the 20 DMA or 50 DMA and any attempted rally has been used as an opportunity to sell for many weeks now.

Gold is under pressure this morning along with equities and other commodities, as it is acting more like a "risk asset" at the moment than a "safe haven", counter to the movement in the dollar.

On a short term basis, gold is breaking down through the bottom of a triangle pattern that has formed over the last couple of weeks and we maintain our stance that a retest of 1525 is likely in the coming weeks.

Gold attempted to rally and take out resistance at 1600 yesterday, and again it failed to do so.  The market found resistance at the 50 DMA at 1591 before selling off and finding support in the low 1570s.

Gold has traded in a $90 range for the last two months and a mere $30 range this week - this is typical "summer doldrums" action for gold and will probably continue through August.

On a weekly chart, it can be seen that the large triangle correction is apporaching its apex, a breakout either way must happen in the next few months.

Gold was under pressure for much of the day yesterday, finding support at 1567, though a pattern of lower lows and lower highs is forming on the short term charts.

On an intermeidate time frame, gold remains in a clearly defined downtrend channel and is approaching the apex of a large flat bottomed triangle pattern.

Gold is looking for clues of further economic stimulus and, so far, isn't getting any which explains the lack of momentum in  any attempted rallies.