Gold made further gains yesterday, making a new high of 1324 in early UK trading. This morning, gold has retreated to retest the 80 hour MA again as the rally progresses in orderly fashion. The 80 hour MA has provided reliable support on the short term charts during this rally.
Equities tumbled yesterday and the first signs of a top being formed are appearing in stocks - further weakness would be positive for gold, traders will be watching the 100 DMA in the S&P 500 to provide support.
The dollar remains well below 80. currently trading around 79.50. A break of the March lows at 79.25 would be very bearish and again positive for gold.
Support can be found at 1314, 1307, 1304, 1298-1300, 1294, 1277-1280, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term, though this now looks unlikely unless we break below 1250.
Resistance can be found at 1321-1324, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail and our targets for the unfolding rally.
Equities tumbled yesterday and the first signs of a top being formed are appearing in stocks - further weakness would be positive for gold, traders will be watching the 100 DMA in the S&P 500 to provide support.
The dollar remains well below 80. currently trading around 79.50. A break of the March lows at 79.25 would be very bearish and again positive for gold.
Support can be found at 1314, 1307, 1304, 1298-1300, 1294, 1277-1280, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term, though this now looks unlikely unless we break below 1250.
Resistance can be found at 1321-1324, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail and our targets for the unfolding rally.