As 2013 draws to a close, gold is trading near the yearly lows and down well over 25% on the year, the first annual loss this century and a truly disastrous result.  Nobody would have predicted such a devastating annual loss this time last year, with gold poised to break 1800 and looking strong.

Short term, gold looks poised to retest 1180 and, in our opinion, break down below this key level and trade all the way down to the next major support level at 1050 early next year.

Equities remain strong and continue to attract investment fund flows away from commodities and other asset classes, whilst the dollar weakness has not helped gold at all as would normally be expected.  This is particularly worrying for the gold bulls, as any dollar rally would see gold under even more pressure.

We expect gold to hit 1000-1050 early next year - the key question for us is whether the market can recover from there and start to rally, or whether continued equity strength, rising interest rates, further economic improvement and reduced quantitative easing will see gold fall even further out of favour and drop towards 700-800.

Today's video for subscribers reviews the year in gold and looks in more detail at the short term picture.

Happy New Year to all of our readers and loyal subscribers!

Gold is rising slightly in light trading after testing the crucial 1180 area last week.  We expected a bounce off this area after the first test and this is playing out as expected.

However, we do expect 1180 to yield on the next test, when it ultimately comes.

Gold is set to end the year with a mammoth 25% loss and near to the lows of the year - in our opinion we will see 1000 gold in the first quarter of next year.

The big question for us will be whether gold can hold 1000-1050 or whether we fall all the way back to 700-800.

Equities continue to climb relentlessly higher, drawing funds and investor interest away from gold, whilst a weak dollar is not helping gold at all, a very worrying development for the yellow metal.

Next week should see more quiet trading in gold and other markets and we do not expect normailty to resume until the week of 6 January, where we will get a good idea of the trends for the first quarter as funds are allocated by fund managers and investors.

Support can be found at 1210, 1200, 1190, 1188 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1220-1225, 1237-1240, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295.  A break above 1250 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

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

Gold bounced off support on Friday to close the week above 1200, though with a big red candle on the weekly chart.  A bounce off this level was not surprising, however we expect any rally to be shortlived and a retest of 1180 to be just around the corner.

This morning, gold is under pressure again after failing to hold 1200, though trading volumes are light ahead of the Christmas holiday.

Equities look to be finishing a stellar year with further strength and oil has also shot higher in the last couple of weeks, though gold remains weak and unloved.

All eyes are on the 1180 level, this is surely the bulls last stand and the bears will want to push home their advantage and go in the for the knockout.

Support can be found at 1190, 1188 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1200, 1210, 1220-1225, 1237-1240, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295.  A break above 1250 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

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

Gold collapsed through support at 1211 yesterday, tumbling below 1200 and making a low of 1187 yesterday at the bottom boundary of the down trend channel.

The sell off has brought gold perilously close to the critical June low at 1180 - we have maintained for months that if this level falls, gold is likely to decline sharply towards 1000.  We may not have to wait long for this, though we expect support at 1180 to hold on the first test at the very least.

The trigger for the recent sell off was the FOMC decision to initiate tapering of bond purchases, also known as Quantitative Easing, on Wednesday and the yellow metal is in serious danger of further sharp falls as the dollar recovers and equities move ever higher.

Support can be found at 1188 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1200, 1210, 1220-1225, 1237-1240, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295.  A break above 1250 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

Today's video for subscribers looks at the recent trading action and our strategy for our next trade.

Gold is tracing out a triangle pattern, with a series of lower highs and higher lows on the short term chart.  The breakout of the triangle will show the direction of the next move in gold, with both the bulls and bears having some indicators in their favour.

The FOMC meeting at 7pm UK time this evening could provide the spark for the break out of the triangle, with trading likely to be volatile immediatly before and after the announcement.

Whilst there is still a possibility that the start of QE tapering will be announced in the statement following tonight's meeting, this would be a shock to the market and likely see gold sell off sharply, with the dollar the main beneficiary.

The dollar is currently struggling to hold onto support at 80 and with oil surging higher and equities remaining robust, it appears that QE is not on the table for today.

Support can be found at 1230, 1223-1227, 1217-1220, 1212, 1200-1207 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1237-1240, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295.  A break above 1270 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

Today's video for subscribers looks at the developing triangle consolidation and what it means for gold.

Gold found support at 1220 on Friday as the bulls fought back from Thursday's sell off to close the week at 1238.  This morning, gold is trading back below 1230 and has fallen back in to the down trend channel as the bears attempt to keep the pressure on after last week's failed breakout attempt.

As we approach the end of the week, trading volumes will fall off sharply as traders leave their desks for the holidays, with gold now looking likely to see a 25% loss for 2013, the first annual loss for 13 years.

The big question is what will happen in 2014 - is this the end of the bull market or a mere correction in a continuing super bull?

Equities have corrected recently and the dollar is weak - with oil moving higher again, this should be an ideal environment for gold to rally, however this has not yet been the case.  This is a worrying development and perhaps a warning signal regarding the underlying strength of the gold market.

Support can be found at 1223-1227, 1217-1220, 1212, 1200-1207 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1230-1235, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295.  A break above 1270 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

Today's video for subscribers looksa

Gold tumbled yesterday, retracing all of Tuesday's gains and increasing the likelihood that the break out move was a "fake out".  Gold is now back within the down trend channel and the bulls need to step up to the plate here and push the price higher - with strong support at 1210-1225, the base is there to potentially build from.

However, the bears will be sensing blood here and will want to press home their advantage and take gold back below 1200 - today could be a critical day for the yellow metal.

Equities are correcting, which should help the bulls, particularly as the dollar remains weak and oil is rallying.  However, if gold cannot find buyers in this favourable environment, the outlook is dire.

Support can be found at 1223-1227, 1217, 1212, 1200-1207 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1230-1235, 1245, 1250-1255, 1268-1270, 1277-1280 and 1291-1295.  A break above 1270 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

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

Gold consolidated Tuesday's gains yesterday, trading in a narrow range between 1251 and 1263.  This morning, gold has fallen slightly, dropping below the key 1250 level to trade around 1245.

The bulls need to hold this level on a closing basis and see some follow through buying after Tuesday's breakout, otherwise there is a danger of further selling, as the prospect of the move developing as a "fake out" increases.

The dollar is attempting to reclaim the 80 level, whilst oil is consolidating recent gains around $98 a barrel.  Today sees the weekly jobless claims data released, along with US retail sales and business inventories.

Support can be found at 1240, 1235, 1223-1227, 1217, 1212, 1200-1207 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1250-1255, 1268-1270, 1277-1280 and 1291-1295.  A break above 1260 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

Today's video for subscribers looks at some targets for this rally and our strategy for our next trade.

We noted yesterday that gold looked like it was trying to form a "double bottom" at 1211 and attempting to move higher - this turned out to be correct as gold surged through resistance at 1250-1260, breaking out of the down trend channel and moving as high as 1268 before finding resistance and falling back to close around 1261.

This morning, gold is holding the 1250-1255 area that is now acting as support, though has not yet managed to build on yesterday's strong gains.

The dollar weakness is persisting, which is aiding gold's rally, whilst a resurgent oil price is also adding to the bullish mood in gold.  We continue to believe that a major rally in gold will not begin until equities correct substantially, though we expect a short term rally to unfold here.

Support can be found at 1250-1255, 1240, 1235, 1223-1227, 1217, 1212, 1200-1207 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1268-1270, 1277-1280 and 1291-1295.  A break above 1260 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

Today's video for subscribers looks at our targets for this rally and our strategy for our next trade.

Gold climbed steadily yesterday after forming a "double bottom" on the charts at 1211 last week and seeing strong buying come in at that level.  The price appears to be breaking out of the down trend channel and is on the verge of testing the important 1250 area.

The move higher in gold is being aided by a weaker dollar, now trading near 80 after failing to hold onto the key 81 level last month.  Oil is rebounding strongly from oversold levels, though any rally in gold is likely to be capped unless equities correct in a meaningful way, which looks unlikely at this time.

As we move towards the end of 2013, it is now clear that gold is going to post its first loss in 13 years - the question on all traders lips is "is this a correction in a bull trend or the end of the bull market?".

Of course only time will tell, though the current environment does not suggest a triumphant return for the bulls next year - rising interest rates and economic activity, a (relatively) subdued geopolitical environment, virtually no inflation and rising equities all point to weak demand for gold and another difficult year next year.

Support can be found at 1240, 1235, 1223-1227, 1217, 1212, 1200-1207 and 1180.  A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.

Resistance can be found at 1250, 1260, 1270, 1277-1280 and 1291-1295.  A break above 1260 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more significant rally was developing.

Today's video for subscribers looks at the recent trading and our strategy for our next trade.