Gold moved higher yesterday, despite quiet trading due to the Presidents Day holiday in he US, building on last week's impressive gains.
The price hit a high of 1340 before retreating and this morning is seeing further selling as participants lock in profits from last week. Gold is now above the key 200 DMA for the first time in a year and all other major moving averages are pointing upwards, suggesting this is the beginning of a new rally phase in gold.
Equities and the dollar remain and weak, whilst the surge in oil has revivied inflation concerns somewhat - a perfect storm for gold to move higher.
The character of the recent rally suggests further gains, as the upleg has been impulsive in nature - we expect higher prices after a brief correction.
Support can be found at 1315, 1295-1300, 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 1340, 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 potential targets for a retracement and our thoughts on where gold is headed next.
The price hit a high of 1340 before retreating and this morning is seeing further selling as participants lock in profits from last week. Gold is now above the key 200 DMA for the first time in a year and all other major moving averages are pointing upwards, suggesting this is the beginning of a new rally phase in gold.
Equities and the dollar remain and weak, whilst the surge in oil has revivied inflation concerns somewhat - a perfect storm for gold to move higher.
The character of the recent rally suggests further gains, as the upleg has been impulsive in nature - we expect higher prices after a brief correction.
Support can be found at 1315, 1295-1300, 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 1340, 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 potential targets for a retracement and our thoughts on where gold is headed next.