Gold continues to be pushed and pulled by the developments in the US in connection with the budget and debt ceiling negotiations, swinging wildly yesterday between a low of 1250 and a high of 1290.
The price remains firmly within the established down trend and a retest of 1180 still appears a likely outcome in the coming weeks, however the "hammer" candlestick on the daily chart yesterday suggests a short term bottom may be in.
The bulls will need to see follow through buying today and a move back above 1292 to get excited, whilst the bears will want to see the price decline back below the key 1272 level.
Any positive developments from the US government will see gold under pressure, whilst continuing deadlock and uncertainty will help the yellow metal and hurt equities and the dollar.
Support can be found at 1272-1275, 1260, 1250-1253, 1220-1225, 1200 and 1180 - a break of 1180 would be an extremely bearish development, suggesting a short term target of 1000-1050 and a possibility of a drop to 800.
Resistance can be found at 1288-1292, 1300-1305, 1322, 1330, 1353, 1375, 1400 and 1434. A break of 1434 would be a bullish development and suggest gold was on its way back above 1500.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
The price remains firmly within the established down trend and a retest of 1180 still appears a likely outcome in the coming weeks, however the "hammer" candlestick on the daily chart yesterday suggests a short term bottom may be in.
The bulls will need to see follow through buying today and a move back above 1292 to get excited, whilst the bears will want to see the price decline back below the key 1272 level.
Any positive developments from the US government will see gold under pressure, whilst continuing deadlock and uncertainty will help the yellow metal and hurt equities and the dollar.
Support can be found at 1272-1275, 1260, 1250-1253, 1220-1225, 1200 and 1180 - a break of 1180 would be an extremely bearish development, suggesting a short term target of 1000-1050 and a possibility of a drop to 800.
Resistance can be found at 1288-1292, 1300-1305, 1322, 1330, 1353, 1375, 1400 and 1434. A break of 1434 would be a bullish development and suggest gold was on its way back above 1500.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.