This morning, gold has got off to a positive start, reaching resistance at 1326-1330 and moving higher along the steep uptrend line. The recent rally has been impressive and impulsive in nature, with no overlapping waves and a series of progressively higher highs and higher lows.
The tumbling dollar has helped propel gold higher, with anaemic equity markets and a surging oil price helping provide a perfect environment for gold to shine, along with silver.
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 is looking increasingly unlikely.
Resistance can be found at 1326-1330, 1350, 1360 and 1377-1380. The breakout above 1300 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 rally in more detail and our targets for this rally.