Gold moved higher yesterday, making a new rally high at 1331 in early trading before retreating back to the 50 DMA later in the session. This morning, gold has sold off sharply, breaking below the 80 hour MA for the first time in 10 days and falling as low as support at the 200 hour MA, currently at 1309.
The uptend remains intact despite this morning's decline, only a break below 1295 would cause us to revise our bullish stance.
The dollar remains weak, trading well below 80, whilst the correction in equities continues, with the S&P some 60 points off the all time highs. Oil has declined slightly this morning and is currently trading around $103 a barrel.
Today sees CPI data released in the US, as well as the Empire Manufacturing data and TIC flows.
Support can be found at 1307, 1304, 1298-1300, 1294, 1277-1280, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 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 this now looks unlikely unless we break below 1250.
Resistance can be found at 1315, 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading and potential areas of support for the unfolding correction.
The uptend remains intact despite this morning's decline, only a break below 1295 would cause us to revise our bullish stance.
The dollar remains weak, trading well below 80, whilst the correction in equities continues, with the S&P some 60 points off the all time highs. Oil has declined slightly this morning and is currently trading around $103 a barrel.
Today sees CPI data released in the US, as well as the Empire Manufacturing data and TIC flows.
Support can be found at 1307, 1304, 1298-1300, 1294, 1277-1280, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 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 this now looks unlikely unless we break below 1250.
Resistance can be found at 1315, 1320-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the down trend line on the weekly chart suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading and potential areas of support for the unfolding correction.