Gold bounced off the 100 DMA yesterday before rising as high as 1309, almost touching the 50 DMA at the top of the recent trading range.
Gold is trading around 1303 this morning at the top boundary of the "triangle" pattern and is back above the 80 and 200 hour MA, in short term bullish mode.
The interesting aspect of the last couple of week's trading has been the relationship between gold and the dollar. As the dollar has rallied powerfully this last week, gold has help up remarkably well - yesterday as the dollar retreated, gold moved higher.
This is in marked contrast to the recent trading where gold would sell off sharply on dollar rallies and tread water during dollar declines. An important change in the offing perhaps?
Equities remain near all time highs and continue to take some of the limelight away from gold and other commodities, however oil is moving higher again and is now trading above $102 a barrel.
Support can be found at 1296-1298, 1291, 1285-1287, 1278, 1273, 1267, 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 1309, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a
significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and our short term trading thoughts.
Gold is trading around 1303 this morning at the top boundary of the "triangle" pattern and is back above the 80 and 200 hour MA, in short term bullish mode.
The interesting aspect of the last couple of week's trading has been the relationship between gold and the dollar. As the dollar has rallied powerfully this last week, gold has help up remarkably well - yesterday as the dollar retreated, gold moved higher.
This is in marked contrast to the recent trading where gold would sell off sharply on dollar rallies and tread water during dollar declines. An important change in the offing perhaps?
Equities remain near all time highs and continue to take some of the limelight away from gold and other commodities, however oil is moving higher again and is now trading above $102 a barrel.
Support can be found at 1296-1298, 1291, 1285-1287, 1278, 1273, 1267, 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 1309, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a
significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and our short term trading thoughts.