The dollar is building on recent gains above 81 and looks to be heading higher in the short term - this will keep the selling pressure on gold, as will the continued equity strength.
A break below 1250 will be a bearish signal for gold and suggestive of a return to 1180 as a minimum, whilst a recovery rally from here and break of 1361 would suggest the correction was over. We still consider the downside to be the most likely course and a return to 1180 cannot be ruled out.
Support can be found at 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1291, 1300, 1310, 1320-1322, 1328-1330, 1338-1342, 1352-1355 and 1360. A break above 1360 would be the first suggestion of a new bull trend, though it would take a break of 1434 to confirm this was the case, with a target of 1525 as a minimum.
Today's video for subscribers looks at the reent trading in more detail and our thoughts for our next trade.