After failing to break through the upper boundary of the down trend channel on Wednesday, gold sold off sharply yesterday, hitting a low of 1294 before recovering to close at 1305. The release of the FOMC minutes was an anti-climax, with no discernible reaction from the gold market.
The ongoing Government shutdown and looming debt ceiling deadline should provide some support to gold, though this has yet to materialise which is worrying for the bulls. There is a high likelihood that an agreement on these issues will see gold sell off sharply and this must be appreciated if taking a long position.
However the bulls will see some constructive action in the charts that suggests the worst of the downside may be over. For now, gold remains within a range, with 1277 at the bottom and 1330 at the top. A break out of this range should see a significant move develop.
Support can be found at 1300, 1292-1294, 1277 and 1272. A break below 1272 would suggest a swift return to 1180.
Resistance can be found at 1307, 1314-1316, 1322, 1330, 1338-1342, 1353, 1375, 1400 and 1434. A move above 1434 would be very bullish, suggesting a return to 1500 and beyond.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
The ongoing Government shutdown and looming debt ceiling deadline should provide some support to gold, though this has yet to materialise which is worrying for the bulls. There is a high likelihood that an agreement on these issues will see gold sell off sharply and this must be appreciated if taking a long position.
However the bulls will see some constructive action in the charts that suggests the worst of the downside may be over. For now, gold remains within a range, with 1277 at the bottom and 1330 at the top. A break out of this range should see a significant move develop.
Support can be found at 1300, 1292-1294, 1277 and 1272. A break below 1272 would suggest a swift return to 1180.
Resistance can be found at 1307, 1314-1316, 1322, 1330, 1338-1342, 1353, 1375, 1400 and 1434. A move above 1434 would be very bullish, suggesting a return to 1500 and beyond.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.