INTERMEDIATE TERM TREND: NEUTRAL
SHORT TERM TREND: NEUTRAL
VERY SHORT TERM TREND: NEUTRAL/BEARISH
Gold remains within a 45 point trading range between 1223 and 1178, with a narrower trading range between 1210 and 1193 containing the price movements in the last few trading sessions. A break out of the narrow trading range will target the boundaries of the wider trading range, with a break out of the wider trading range signalling the next significant move in gold is underway.
Gold is clearly coiling for a big move one way or the other, with the odds favouring the downside as the prevailing trend remains down and gold trading below most of the major moving averages. The pattern should resolve itself within the next week or two.
Gold has not benefitted from a sharp correction in the dollar, which is concerning for the gold bulls, and any resumption of the dollar rally could spell trouble for gold.
Equities remain near all time highs, diverting investment funds away from commodities and metals, however oil is attempting to rally and is now trading above $56 a barrel.
Support can be found at 1193, 1184, 1178-1182, 1174, 1160, 1142-1145, 1131, 1124, 1100, 1085, 1045, 1000, 950, 867 and 806. A break of 1131 would be very bearish for gold and suggest a return to 1000-1050 in the first instance.
Resistance can be found at 1204-1205, 1209-1210, 1220-1223, 1252-1256, 1274, 1285, 1297 and 1305-1308. After a promising move higher following the break of 1180 last year, gold has failed to break the intermediate down trend and is now heading lower again, with the 2014 lows in sight.
Today's video for subscribers looks at the recent trading in more detail and our strategy for today's trading session.