Gold continued to consolidate last week's gains in a triangle pattern yesterday and this morning has broken out of the triangle to the upside as expected.
The price is currently trading around 1325, having broken above the critical 1322 level and above the 65 week MA for the first time since January 2013, some 18 months ago.
This is potentially a key breakout for gold and suggests that the gold market has finally bottomed at 1180 and the bulls are back in the driving seat.
Equities are struggling to continue to move higher and the dollar is falling back towards 80, with oil holding above $105 a barrel, however as we pointed out in yesterday's blog update, gold appears to be less influenced by outside markets than has been the case for the past year or more.
Support can be found at 1318-1322, 1310, 1306, 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 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 - the break below 1250 seems to have been invalidated, indicating that a return to 1180 is significantly less likely.
Resistance can be found at 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end and higher prices are ahead.
Today's video for subscribers looks at the recent trading in more detail and our thoughts for our next trade.
The price is currently trading around 1325, having broken above the critical 1322 level and above the 65 week MA for the first time since January 2013, some 18 months ago.
This is potentially a key breakout for gold and suggests that the gold market has finally bottomed at 1180 and the bulls are back in the driving seat.
Equities are struggling to continue to move higher and the dollar is falling back towards 80, with oil holding above $105 a barrel, however as we pointed out in yesterday's blog update, gold appears to be less influenced by outside markets than has been the case for the past year or more.
Support can be found at 1318-1322, 1310, 1306, 1300, 1289, 1285, 1263, 1257-1260, 1250-1252, 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 - the break below 1250 seems to have been invalidated, indicating that a return to 1180 is significantly less likely.
Resistance can be found at 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. We are now attempting to break the key 65 week MA - a break of this level would suggest that the intermediate down trend was at an end and higher prices are ahead.
Today's video for subscribers looks at the recent trading in more detail and our thoughts for our next trade.