Gold slid lower yesterday and overnight as the short covering rally on Friday and Monday ran out of steam.  The yellow metal is currently trading around 1240 though has found support at the 23.6% retracement of the recent decline at 1237.

Oil is moving sharply higher this morning after breaking through resistance at $98 a barrel to currently trade at $101 and looks to be breaking out with $106 the initial target.

Equities are weaker, dragged down by Far Eastern markets and the dollar continues to rally back up towards resistance in the 84-84.50 area.  A break through this resistance zone will see a strong rally up towards 88 and beyond.

With the 4 July holiday tomorrow in the US, we expect quiet range bound trading for the rest of the week, barring any major news events influencing the markets.

Today's video for subscribers looks at the recent trading in more detail and sets out our strategy for our next trade.

Gold continued to build on Friday's short covering rally yesterday, though volumes are light and with the 4th July holiday coming up, we may not see a strong move in gold until after the weekend.

We commented last week that gold looked ready to find support and a recovery rally which looks to be the case, though we suspect the downside is not quite finished yet.

We are expecting a resumption of the downtrend once this rally runs its course and our subscribers have been informed of our targets for this rally.

Equities and oil are surging higher again after falling sharply last week - again we may need to wait until next week to ascertain the strength behind the moves and the true nature of these markets.

The dollar is moving back towards resistance at 84-84.5, a move through this zone will target 87-88 in the first instance and be bearish for gold.

Today's video for subscribers looks at the recent trading in more detail and our targets for this recovery rally.

The first day of a new quarter has seen gold build on the gains from late Friday when gold rallied sharply on short covering to form a "bullish engulfing" candlestick on the daily chart.

The rally from a low of 1180 after a sustained week of selling may mark the bottom for this decline, though there is a good chance of a retest of the lows later this week or next before the rally can begin in earnest.

Our long term target of 1156 is still a distinct possibility eventually, though the market is overdue a recovery rally and we may see prices rise for the next week or so from here.

Equities are moving higher with oil today whilst the dollar is weaker in early trading, however the recent rally in the dollar suggests a move back up to the 84-84.5 area is likely in the near term.

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