Rather than give us the expected correction, gold powered higher throughout the afternoon and evening yesterday and is now pushing through the 1780 resistance area.

The strength in the gold market yesterday took us by surprise, it is an indication that this rally is far from over - once the price gets above 1800, we expect a quick move higher, though it will be some time before we can challenge the all-time highs at 1920.

Today's video looks at the price action in more detail and our next trade thoguhts, as well as our revised targets for the next rally leg.

The pressure of a collapsing oil price and a rising dollar finally proved too much for gold and the price dropped through 1750 and all the way down to 1738 before finding support.

Gold has recovered this morning and is currently trading around 1755, though the rise looks corrective in nature and we expect further price falls.

However, there is significant buying interest which will support the price dips and we do not expect a large correction from here.

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

Gold spent the day yesterday bouncing around in a narrow range as the consolidation of the huge gains of the last month continues.

A solid base around 1755-1760 has formed in the past week in what we believe is a Wave 4 consolidation.  The final Wave 5 of this initial rally leg of major Wave 5 will be next.  Our subscribers know what our target is for this next rally leg.

Today's video looks at the consolidation in more detail and the impact of oil and the dollar on the gold rpice.

As has been the case several times over the past week or so, gold found support in the mid-1750s and has bounced higher again.

In the face of a plummeting oil price, strengthening dollar and stalling equities, gold is holding up very well, consolidating the gains of the past month and building up power for the next move up and an attempt at 1800.

The bearish early warnings from yesterday have not developed further and are in the process of being reversed.  In our view the maket almost looks ready to move higher again.

Today's video looks at the market action of the last week in more detail and our strategy for our current trade.

We did get a successful attempt at 1780 on Friday, as expected, however the market quickly reversed after hitting a high of 1790 and ended the day around 1775.  This formed a "shooting star" candlestick on the daily chart, which is a potential reversal pattern.

This morning, gold is under further selling pressure - the bulls need to hold the solid base formed above 1750 and the dip needs to be bought back up, as has been the case many times in the past few weeks, to prevent a more significant correction unfolding.

However, even if 1750 fails and a larger correction pans out, we expect much higher prices over the next 6-9 months.

After holding up remarkably well in the face of a stronger dollar and continuing weakness in oil yesterday, gold has formed a solid base around 1758 which should serve as a "launchpad" for the next move up.

We have had a week of consolidation after last Thursday's gains - this is encouraging market action for the bulls, as the gains are being held and participants are getting used to this price level as "normal".

We expect another attempt at 1780 later today, if the market gets through this level there is significant resistance just above at the 1790 February high and 1800 round number.

Today's video looks at the market action of the last couple of days in more detail and the resistance levels above.

Gold is again under a little pressure this morning - oil down $10 from its highs last week is a major drag on the gold price and a rebounding dollar is also weighing.

However, any dips are being quickly bought and there is a solid base building above 1750 for the next leg up.  It is not surprising to see a pause to consolidate the breathtaking gains of the last week or so, the important thing from a technical standpoint is that the gains are being held.

Today's video looks at the impact of the oil price sell off and the price action from the last couple of days in more detail.

After the Fed last week announced a range of long anticipated measures as part of QE3 the gold price surged to a high on Friday of $1777 – only bettered so far this year by the high of $1790 back in February.  This was gold’s fourth week in a row of closing at the highs, which is a good indicator that the tides have turned and we are now firmly back in a bull market.

The price action  after the Fed announcement was no surprise.  Bullion is seen as a hedge against inflation and a weakening dollar, and the Fed’s QE3 measures are likely to impact both.  The market had been anticipating the announcement for many months and so, to a degree, had already priced in the impacts – but human nature being what it is meant that the speculators didn’t want to miss out and so the price was pushed higher still.  In our opinion gold is looking quite over-bought at the moment and so a short term correction is likely, although the momentum in the market is such that a push above $1800 is probable before this happens.

Our view is that gold will quickly push on to take out the yearly high at $1790 and then go beyond to record highs above the $2000 mark.  We said this in our article back in July when the price was around $1560 and it still holds true.

In India, the world’s biggest consumer of gold, buyers last week geared up to get their hands on as much of the precious metal as possible at the lower prices before price hikes kicked in.  This will continue throughout the festive season which climaxes in November with Diwali.  This demand will underpin the price and continue to help drive it higher.

The Fed are committed to QE3 for the long haul – there has to be a significant drop in US unemployment rates before it will call time and adjust its policy.  This will have an impact on the dollar, which in turn will push up the price of gold.

On the technical front, we are now pretty convinced that we are in major Wave 5 rally which started in August 2012 and will end (by our current projections) mid –way through next year, well beyond the $2000 level.  We are currently in the first wave of this move with a target around $1800.  There will be resistance at $1790 and $1800, and we’d expect a correction back towards $1750 and maybe $1725 shortly after those levels are breached before the market pushes on again to establish new highs beyond $2000 by the end of this year.

Obviously these moves will take a few months to play out and there will be some corrections along the way.  Our ethos is to trade with the trend and so we are unlikely to be looking to go short unless it is clear that a intermediate top is in place.  Our strategy will be to take the opportunities to sell the highs and buy the dips – this is the advice we’ll be sharing with our subscribers over the coming weeks and months.

As we predicted in yesterday's blog update, gold held above 1750 and started to move higher again in the afternoon session, spurred on by a surging silver price.  The 1750 level is key support and was in no danger at all yesterday as buyers came in swiftly on the dip to snap up more metal.

Gold is currently trading at resistance around 1778 and looking to move to new rally highs, continuing the strong momentum from the last few weeks. 

Today's video looks at our targets for the next rally leg, and yesterday's price action in more detail.

Gold has sold off slightly overnight, weighed down by a sharp sell off in oil and a bit of dollar strength.

There is strong support at 1750 and we do not expect a decline below this level - there is little conviction behind the selling and it appears to be a mild correction within the Wave 5 rally.  However, a drop below 1750 will suggest a larger correction and lower prices in the short term.

Today's video looks at the market action of the past few days in more detail and a few technical signals we monitor.