Gold crucially closed above 1730 yesterday and has held onto the gains overnight, currently trading around 1733.

The market is in the 1730-1738 resistance zone and as of yet has not found the momentum to attempt a break out.  However, the price is holding here for now and an attempt at 1738 looks likely at some point today.

As our blog entry yesterday pointed out, if gold cannot break through this resistance area, disappointed longs will throw in the towel and the price will likely fall to the bottom of the trading range at 1700 again.

For our subscribers at www.goldtradingexperts.com, today's video looks at the trading action of the last few days in more detail and our strategy for our open trade.

Friday’s price action left the bulls far more enthused by the end of the day than in previous sessions last week, where it looked  possible that 1700 might give way, which would have led to a sharp sell off back to 1670.

As it turned out, 1705 held firm and formed a double-bottom with the previous day’s low as price slowly ground its way back throughout the afternoon to close at 1713.

Overnight trading in Asia saw gold rise to 1723 by London opening on the back of a weakened dollar as a result of President Obama’s positive statements on Friday regarding the probable resolution of the “fiscal cliff” situation.

We have seen a steady climb throughout the day today back to the 1730 level, where gold faces some strong resistance at 1732-1738 – a breakthrough of this is likely to see prices climb back towards 1800, however a failure to breach this resistance area will mean another test of the 1700 support level is likely.

For our subscribers at www.goldtradingexperts.com, today's video looks at our strategy for navigating our open long position through these potentially choppy waters.

Gold sold off dramatically yesterday afternoon - as a big seller came in, the price dropped $20 in a matter of minutes.  The price recovered well to finish around 1716, though overnight and this morning the selling pressure has returned.

The "bull flag" pattern we noted yesterday has been negated by the sharp drop yesterday, though the market found support at the 50% retracement of the rally to 1738 and this is still a "normal" retracement of that rally.

We still consider the bullish case to be the more persuasive, with solid support at 1700-1705, though a drop below this level will be bearish and suggest a retest of 1672 at the least.

For our subscribers at www.goldtradingexperts.com, today's video looks at yesterday's price action in more detail and the short term Elliot Wave count alternatives in play.

Gold continues to consolidate last weeks gains and appears to be tracing out a "bull flag".  This pattern should see a resolution to the upside in the next day or two if it is correct.

The oil price appears to be attempting to form a bottom and equities have become oversold and due a bounce.  Also, the dollar rally looks to be running out of steam - all of these should be bullish supporting factors for gold in the coming weeks.

For our subscribers at www.goldtradingexperts.com, today's video looks at the bull flag pattern in more detail, including the target price and our strategy for our next trade.

Gold continued to consolidate yesterday, finding support at the 1718 level we had identified as likely support before ending the trading session around unchanged at 1725.  This formed a "doji" candlestick on the daily chart.

This morning, gold has continued to consolidate in a narrow range after last week's big rise.  If gold can end the week around this level, the market will be set up nicely for further gains next week.

For our subscribers at www.goldtradingexperts.com, today's video looks at yesterday's trading action in more detail and what we expect to happen from here.

Vince Lanci thinks that $1900 is on the cards by year end and that there is a potential "bloodbath" for stocks as a result of inadequate resolutions to the US deficit challenges...we're inclined to agree in general terms, but there aren't many weeks left in 2012 so January is looking more likely.  What do you think?

Gold traded in a very narrow range yesterday, due largely to the Veterans Day holiday in the US, consolidating the gains of the previous week. 

Towards the end of the session and overnight gold has sold off mildly with other commodities and equities, though this action can be seen as "backing and filling" and further consolidating last weeks' gains.

A fall back below 1700 appears unlikely at this stage, support lies at 1718 and 1712 below the maket, as well as 1702.

For our subscribers at www.goldtradingexperts.com, today's video looks at last week's trading in more detail and why we believe prices are heading higher for the rest of the year.

After a stellar rise last week, gold formed a "doji" candlestick on Friday, indicating a pause in the market.  However, this morning, gold has consolidated last week's gains above key resistance at 1730 which now becomes support.

We expect the momentum of last week to continue after a bullish reversal on the weekly charts and a run at 1800 looks possible from here in the next week or two.

There are an enormous number of buy stops floating just above 1800 and when the price does eventually break through this heavy resistance area, a flurry of these buy stops will be triggered, propelling the market higher.  The all time highs will quickly come into range after this.

Today's video looks at last week's trading in more detail and where we can expect to find resistance this week.

Gold put in a solid week of gains last week, climbing $54 – its biggest weekly improvement since the end of August, signifying an arrest of the previous four weeks of losses throughout October.

The losses in October were a combination of a natural correction following on from week-on-week gains stretching back to the end of July, uncertainty in the run up to the US Elections,  the effects of superstorm Sandy and better than forecast jobs news in the US. 

The big news which stimulated the market last week was the re-election of President Obama.  The Bank of England and European Central Bank’s rate decisions and subsequent statements of intent hardly registered – all eyes were on America to see who got voted in.

If it had been Mitt Romney, we’d have seen the price of gold drop dramatically – this was weighing heavily on price in the run up as the election was looking like a close call.  His economic policies were an about-turn from those of Obama and so investors were wary of getting in behind gold until after the election.

With Barack Obama being voted in, the fiscal stimulus package known as QE3 will continue for the foreseeable and may even intensify if the US economy drops back into recession as a result of Congress not being able to agree a deficit reduction plan with the fiscal cliff looming.  If a deal isn’t cut by the end of this year, huge cuts in public spending and sharp tax hikes will automatically come into effect.  All eyes will be on this over the coming weeks as it’s likely to dictate the direction of most markets into next year.

Throughout this week there are a few key news events...

Early this morning Greece approved their 2013 austerity budget, and this will be followed later today by a meeting of the Eurozone Finance Ministers in Brussels.

Tuesday is a quiet day, with only the UK inflation data to look out for; but Wednesday is much busier with UK jobless reports and US Retail and Production Output data being released.  Thursday is another busy day with Euro GDP and both Euro and US inflation figures due.

We see gold consolidating its gains this week and next, with a steady climb towards $1800.  There is resistance around $1755-$1760, but after that there isn’t much in its way back to the previous yearly high of $1796.  If the price breaks through that previous high and $1800 then there really isn’t much in the way of resistance all the way up to the record highs around $1900.

On the downside, we’ve got support at $1730, $1715-$1720, $1700 and $1693; so there are a number of areas of support below the market before we would see a sharp sell off all the way back down to the low $1600’s.

Gold broke out of the "mini triangle" we had identified to our subscribers in the afternoon session.  The breakout was to the upside as expected.  Gold continued to power higher and broke decisively through the key resistance level at 1730.

The price gains were held and consolidated overnight and gold appears to be embarking on the start of what should be a powerful Wave 3 rally, which will be confirmed with a break of 1800.

Today's video looks at yesterday's price action in more detail and identifies where we can expect to find resistance levels.