The market appears to be forming a "bull flag" on the short term charts, with a target of 1324 - we expect a retest of 1300 at least from here. The strong down trend and bearish sentiment will make further gains above 1320 very difficult for gold to achieve, particularly in the weak summer months.
The dollar was smashed lower after the FOMC minutes though appears to be stabilising and we expect a recovery back to the recent highs and beyond over the coming weeks.
As we anticipated, stocks are again looking strong as the powerful bull trend re-establishes itself after the recent correction. We expect to see new all time highs in US and UK stock markets soon now that the market has successfully backtested the breakout point.
Today's video for subscribers looks at the recent trading action, our thoughts on the recent rally and our strategy for our next trade.