The current rally looks to have run out of steam and the strong rejection of 1300 on Wednesday will have unsettled the bulls and emboldened the shorts. There is heavy resistance above the current price all the way up to 1350 and the powerful down trend continues to act as a magnet, pulling prices lower.
US equities hit a new all time high yesterday and oil continues to power higher, trading well above $107 and surging higher on its way to $110 and $114, our next targets for oil. Interestingly, the strength in oil has not translated to strength in gold - the two markets have displayed very little correlation in recent months.
The dollar is exerting most influence over gold at the moment, though the fact that gold falls hard when the dollar rises and does not rise much at all when the dollar falls is another worrying signal for the bulls.
Today's video for subscribers looks at the recent trading in more detail and the signals we can pick up from the weekly gold chart.