A surge in the dollar yesterday saw gold tumble below the 20 DMA, with the price falling $30 before finding support around 1330. Gold has fallen sharply since touching the 65 week MA, a long term resistance line, and is now over $60 down from that peak.
With the situation in Ukraine simmering down for now, the dollar powering higher and equities and oil finding renewed buying, gold is under pressure, with the mixed messages from the FOMC meeting yesterday adding to gold's worries.
It appears that the strong rally from the 31 December lows is over for now, though we suspect this is the first leg of a new upleg and as such, when this correction is completed we will see gold move higher again. The sharp decline in recent days suggests to us that a retrace back towards 1380 is likely in coming days.
Support can be found at 1330-1332, 1322, 1312-1315, 1307, 1295-1300 and 1280.
Resistance can be found at 1340, 1350, 1360, 1370-1373, 1380, 1388-1391, 1395-1400, 1420 and 1435. 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 trading in more detail and our thoughts for what happens next in gold.
With the situation in Ukraine simmering down for now, the dollar powering higher and equities and oil finding renewed buying, gold is under pressure, with the mixed messages from the FOMC meeting yesterday adding to gold's worries.
It appears that the strong rally from the 31 December lows is over for now, though we suspect this is the first leg of a new upleg and as such, when this correction is completed we will see gold move higher again. The sharp decline in recent days suggests to us that a retrace back towards 1380 is likely in coming days.
Support can be found at 1330-1332, 1322, 1312-1315, 1307, 1295-1300 and 1280.
Resistance can be found at 1340, 1350, 1360, 1370-1373, 1380, 1388-1391, 1395-1400, 1420 and 1435. 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 trading in more detail and our thoughts for what happens next in gold.