In another quiet trading session, gold continues to consolidate last weeks' gains.  Traders await the Jackson Hole economic symposium and Ben Bernanke's speech for further clues on the timing and extent of the much anticipated economic stimulus.

Gold is bouncing around in a narrow range between 1677 and the 23.6% Fib retracement at 1655 and may well stay there unitl Friday and the aforementioned speech.

Gold bounced around in a narrow range yesterday as the market consolidated the impressive gains of the previous week. 

Traders are now anticipating Ben Bernanke's speech at the Jackson Hole symposium on Friday, for either an announcement of further economic stimulus or, at the very least, further clues to the timing of any such stimulus.   and we expect markets to tread water until then in the absence of further market moving events.

Although it is likely that Bernanke will provide further details regarding economic stimulus, there is potential for some disappointment if nothing is forthcoming, as the markets are in full QE anticipation mode.

Today's video looks at our strategy for the next few days and further thoughts on Friday's meeting.

Gold hit a high of 1677 yesterday before selling off slightly in thin trading due to a public holiday in the UK.

This morning, gold has continued to drift lower and found support at the 23.6% Fib retracement of the rally from 1590.

We expect the rally to resume after this short correction, with our initial targets 1680 and 1700.  However longer term we expect new all time highs from this Wave 5 rally.

Gold held onto Tuesday's gains all day yesterday, before vaulting higher again after the release of the FOMC minutes showed that further economic stimulus had been discussed and is likely to be deployed unless there is a dramatic improvement in the US economy.

Gold has now broken through above the upper boundary of the Wave 4 triangle and it is now very likely that Wave 5 is underway.  A couple of closes above 1655 will seal it.

Today's video looks at potential overhead resistance and our targets for the first impulse wave of this Wave 5 rally.

Finally, with silver and platinum breaking out, oil higher and the dollar selling off, gold managed to breach the 1630 resistance area yesterday and begin to move higher.

Once 1630 gave way, gold immediately jumped 8 points as a whole raft of buy stops were taken out.  The price continued to rise to 1640 where the 200 DMA provided some resistance, though this is being challenged again this morning.

Although there are still many obstacles in the way, gold appears to be in the early stages of the much anticipated Wave 5 rally, though we will not have confirmation until the market breaks out of the large Wave 4 triangle, the upper boundary of which is currently at around 1655.

Today's video looks at the breakout in more detail and where we can expect to see resistance areas above.

In another very narrow trading range yesterday, gold found good support at 1610 before rising for the rest of the day and finishing the trading session above 1620.

Trading remains light and slow, though the market is drifting back up towards the top of the recent 1580-1630 range.

Today's video looks at the action (in the loosest sense of the word!) and the recent range in a bit more detail.

Gold continues to drift higher, though Friday's range was a desperate $9 as the "summer doldrums" continue to grip the market. 

As gold again approaches the top of the recent trading range at 1630, we will be watching closely for signs that, this time, a breakout is going to occur.  If it does not, disappointed longs will again liquidate and send the price back into the range.

It is interesting for us to note that each time gold has sold off recently, buyers have come back in at higher levels, giving us a pattern of higher lows which suggests the market bias is upwards.

September should see life return to the markets as traders return to their desks and back to work in full force. In addition, the EU issues that have been effectively set aside for the entire month of August will come back into sharp focus.

Gold continued in its range bound pattern again this week, with another week of very low volume trading.  This is likely to continue for another week or two – as is just about everything else, the gold market is seasonal and many traders sit on the sidelines during the summer doldrums, not wanting to get caught out by the strange and seemingly random price moves that a thinly traded market can sometimes throw up.

The thing we all know with sideways action is that it eventually has to breakout – gold has reached that point and over the next few weeks it has to break out of the $100 range it’s traded in since the start of June.

Earlier this week gold dipped beneath the $1600 level after poor economic news from China – China is the second largest buyer of gold as people invest in the yellow metal to offset inflation concerns.  With inflation worries dampened, the demand for gold drops.  The strong support around the $1580-$1590 level held firm though and soon gold was back above $1600 as comments from Angela Merkel gave support to Mario Draghi’s crisis fighting strategy for the Euro.

Traders are now waiting to see what happens with the Fed at the end of this month.  Any indication that QE3 is imminent will send prices beyond the strong resistance at $1630 and a breakout will ensue.

As we’ve been saying for many weeks now, there are clear opportunities both north and south beyond key support and resistance levels.  To the north there is resistance at $1630, $1660 and $1690-$1700…after that there is a clear run up to $1800.  Our feeling is that a bullish move is the more likely of the two at the moment. This view is shared by some real heavyweights as billionaire fund managers George Soros and John Paulson heavily invested in gold.  With his increased stake, 44% of Paulson’s $24 billion fund is exposed to gold so he clearly believes that the price is due to rise.

Below us there will be support around $1580, $1560 and $1525 – if that lower level gives way; our view is that the price is going MUCH lower and probably pretty quickly.

At the moment we’re just waiting and watching to see what happens.  Our success has come from picking up on strong movements and getting a good slice of the action – right now there’s not much of that about.  But that’s ok…patience and disciple have always been the key to success.

The pattern in gold continues to be "up on bad economic news" and "down on good economic news" as the probability of further economic stimulus increases and decreases.  This appears to be just about the only factor influencing the market at the moment.

This afternoon, gold is up on the back of weak data coming out of the US, again exacerbated by thin trading conditions.  While we remain in the range 1570-1630 without any definite trend, the only strategy is to sit and wait.

Gold sold off quite sharply on the back of stronger than expected retail numbers out of the US yesterday (a stronger economy reduces the prospect of further economic stimulus) and is now trading back below 1600.

Gold remains within the narrow range it has been trading in since May, with 1630 at the top of the range and 1570 at the bottom.  This is within the larger triangle Wave 4 correction that we have been in since September 2011.

It will take some news or event to start the next move in gold (which we still believe will be upwards) and we may have to wait until September and the return of traders from their holidays before this happens.