We expect the market to find support at the 200 hour MA around 1300 before rallying further, with the weak dolar and powerful rally in oil the catalysts. We must continue to monitor equities, as a renewed rally in stocks will put pressure on the gold price as funds flow away from commodities and back into equities.
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 correction to the recent rally in more detail.