Gold moved in a very narrow $8 range yesterday, yet again encountering resistance in the 1583-1587 area and making a low for the day at 1575.
The dollar continues to exhibit strength and is breaking out to higher ground, as participants currently favour the currency over the Euro, British Pound and Yen. This dollar strength is capping the gold price and looks set to continue for a while yet.
There is no end in sight to the relentless rise of equities, which is drawing attention and funds away from gold. We expect gold to start rising again when equities correct - there are few signs of a top yet, though stocks are becoming very overbought and the inevitable correction could begin at any time from here.
There is little in the way of economic data from the US today, though the retail sales numbers are announced tomorrow which could set the tone for the rest of the week.
Today's video for subscribers looks at the strategy for our next trade and the recent trading action.
The dollar continues to exhibit strength and is breaking out to higher ground, as participants currently favour the currency over the Euro, British Pound and Yen. This dollar strength is capping the gold price and looks set to continue for a while yet.
There is no end in sight to the relentless rise of equities, which is drawing attention and funds away from gold. We expect gold to start rising again when equities correct - there are few signs of a top yet, though stocks are becoming very overbought and the inevitable correction could begin at any time from here.
There is little in the way of economic data from the US today, though the retail sales numbers are announced tomorrow which could set the tone for the rest of the week.
Today's video for subscribers looks at the strategy for our next trade and the recent trading action.