INTERMEDIATE TERM TREND NEUTRAL
SHORT TERM TREND NEUTRAL
VERY SHORT TERM TREND NEUTRAL
Not much has changed in the past two weeks - gold remains trapped within a 55 point trading range between 1225 and 1170 with a slight downward bias to the trading. Significant resistance can be found at 1200 and 1215 before gold reaches major resistance at 1223-1225.
Gold continues to coil for a big move one way or the other - we still consider that the odds favour the downside as the prevailing trend remains down and gold is trading below most of the major moving averages
The recent dollar weakness appears to have come to an end and we are mindful that a new dollar rally would most likely see a decline in gold – the sharp sell-off did not see gold move higher at all which is worrying for the bulls.
After a brief correction, equities have recovered to new all time highs, continuing to divert investment funds away from commodities and metals whilst oil is steadily moving higher after the sharp plunge to $44 a barrel.
Support can be found at 1184, 1178-1182, 1175, 1160, 1142-1145, 1131, 1124, 1100, 1085, 1045, 1000, 950, 867 and 806. A break of 1131 would be very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1194, 1200, 1207, 1209-1210, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. After a promising move higher following the break of 1180 last year, gold has failed to break the intermediate down trend and is now heading lower again, with the 2014 lows in sight.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.