Gold surged through 1300 yesterday as the unfolding rally gained momentum, homing in on the 200 DMA like an Exocet missile. It can only be a matter of time before we see gold break through this important trading level, currently at 1309 and falling.
The tumbling dollar and surging oil price are aiding gold's ascent, with wobbling equities helping the rally. This is shaping up to be the best week for the gold bulls since the August rally and a close near the weekly highs will suggest further gains next week.
A "double bottom" has now been confimed on the weekly chart at 1180 - a strong technical signal, particularly when the triangle pattern has been broken so decisively to the upside.
Support can be found at 1294-1296, 1284-1286, 1280, 1270-1275, 1266-1268, 1250-1255, 1237-1240, 1220-1225, 1210, 1200, 1188-1190 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term, though isa looking increasingly unlikely.
Resistance can be found at 1302-1305, 1326-1330, 1350, 1360 and 1377-1380. The breakout above 1280 suggests an end to the intermediate term down trend, though it will take a close above 1300 to confirm a more significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail
The tumbling dollar and surging oil price are aiding gold's ascent, with wobbling equities helping the rally. This is shaping up to be the best week for the gold bulls since the August rally and a close near the weekly highs will suggest further gains next week.
A "double bottom" has now been confimed on the weekly chart at 1180 - a strong technical signal, particularly when the triangle pattern has been broken so decisively to the upside.
Support can be found at 1294-1296, 1284-1286, 1280, 1270-1275, 1266-1268, 1250-1255, 1237-1240, 1220-1225, 1210, 1200, 1188-1190 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term, though isa looking increasingly unlikely.
Resistance can be found at 1302-1305, 1326-1330, 1350, 1360 and 1377-1380. The breakout above 1280 suggests an end to the intermediate term down trend, though it will take a close above 1300 to confirm a more significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail