Gold traded in a narrow range between 1279 and 1288 yesterday, with the selling continuing after Friday's plunge below 1300. This morning, gold is down slightly again, though the trading is quiet with the 61.8% retracement of the rally from 1180 to 1434 at 1277 providing support.
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.
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.