Gold remains within the narrow channel between the 50 and 100 DMA. After moving to the upper boundary of the triangle yesterday and failing to break out, the price declined back below 1300 and the short term mixed picture remains in play.
The dollar strength needs to be watched - after rallying powerfully off long term support at 79, the dollar has stalled just above 80. A resumption of the rally will be bearish for gold, particularly a break above 80.40, whilst a sustained decline back towards 79 would give the yellow metal a boost.
Equities remain well supported and near to all time highs, diverting funds and interest away from gold as they have for the past couple of years - a strong breakout above 1900 would be very bearish for gold.
Support can be found at 1285-1288, 1278, 1273, 1267, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 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 this now looks unlikely unless we break below 1250.
Resistance can be found at 1295, 1304-1305, 1309, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and reviews the longer term chart patterns.
The dollar strength needs to be watched - after rallying powerfully off long term support at 79, the dollar has stalled just above 80. A resumption of the rally will be bearish for gold, particularly a break above 80.40, whilst a sustained decline back towards 79 would give the yellow metal a boost.
Equities remain well supported and near to all time highs, diverting funds and interest away from gold as they have for the past couple of years - a strong breakout above 1900 would be very bearish for gold.
Support can be found at 1285-1288, 1278, 1273, 1267, 1250-1255, 1237-1240, 1220-1225, 1210, 1200 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 this now looks unlikely unless we break below 1250.
Resistance can be found at 1295, 1304-1305, 1309, 1314-1315, 1319-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The impulsive breakout above the first down trend line on the weekly chart suggests an end to the intermediate term down trend, however the 65 week MA must be broken before a significant rally can develop.
Today's video for subscribers looks at the recent trading in more detail and reviews the longer term chart patterns.