After bouncing off support at 1356-1359 many times yesterday and in the past week, the bears pushed the gold price through 1355 this morning, triggering a wave of stop losses that had accumulated under 1350.
The price fell as far as the lower boundary of the uptrend channel at 1340 and so far this level is holding. The price action today appears to be a washout move lower at the end of the ABC correction, however a break of 1340 will see a test of the 50 DMA at 1331 and possibly 1325.
As the tensions in Syria recede and market participants begin to focus on next week's FOMC meeting, gold has fallen and is now in an area of critical support. A break of 1325-1330 will see a retest of 1300 and 1272 - a break of 1272 will signal a return to 1200 and a retest of the June lows. We consider the likelihood of a break below 1325 to be low and a return to 1200 to be very low.
Equities remain strong, diverting funds away from gold, however the dollar remains weak and is capping the declines in gold somewhat.
Today's video for subscribers looks at yesterday's action in more detail and our strategy for our next trade.
The price fell as far as the lower boundary of the uptrend channel at 1340 and so far this level is holding. The price action today appears to be a washout move lower at the end of the ABC correction, however a break of 1340 will see a test of the 50 DMA at 1331 and possibly 1325.
As the tensions in Syria recede and market participants begin to focus on next week's FOMC meeting, gold has fallen and is now in an area of critical support. A break of 1325-1330 will see a retest of 1300 and 1272 - a break of 1272 will signal a return to 1200 and a retest of the June lows. We consider the likelihood of a break below 1325 to be low and a return to 1200 to be very low.
Equities remain strong, diverting funds away from gold, however the dollar remains weak and is capping the declines in gold somewhat.
Today's video for subscribers looks at yesterday's action in more detail and our strategy for our next trade.