This morning, gold continues to trade within this tight range, though is attempting to form a bottom above 1180 and move towards strong resistance in the 1300-1320 area.
Oil is surging higher again this morning and is now trading well above $104 a barrel, whilst stocks also continue to move higher. Both stocks and oil moving higher suggests optimism with regard to economic recovery in the US is outweighing the prospect of tapering of QE.
The dollar is moving higher as well, though is currenly retesting the breakout point at 84.50. A strong move higher in the dollar will be bearish for gold and could cap any rally attempts and push gold back towards the bottom of the recent trading range around 1180-1200, possibly even below.
Today sees the release of the FOMC meeting minutes which will give further insight into the discussions regarding the timing of QE tapering and interest rate expectations. This release often moves markets significantly, so we will be watching closely for strong moves following the release of the minutes at 7pm UK time.
Today's video for subscribers looks at our strategy for our next trade and our expectations for the gold price in the near term.