After a powerful rally that took the gold price as high as 1340, profit taking saw the price drop as low as support at 1312 yesterday. Gold appears to be tracing out an ABC correction from the highs, though we suspect the recent rally is the start of a significant move higher in the yellow metal.
The price is now above all major moving averages and has decisively broken out of the intermediate term down trend channel, with the breach of the 200 DMA a key signal for the bulls.
The dollar remains under pressure, falling below 80 in trading today, whilst oil is surging higher and equities remain well off the recent highs.
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 breakout in more detail and our targets for the ABC correction.
The price is now above all major moving averages and has decisively broken out of the intermediate term down trend channel, with the breach of the 200 DMA a key signal for the bulls.
The dollar remains under pressure, falling below 80 in trading today, whilst oil is surging higher and equities remain well off the recent highs.
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 breakout in more detail and our targets for the ABC correction.