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.
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.