After breaking the rising wedge formation on Wednesday, gold continued to sell off steadily yesterday, finding support at 1664, just above the 200 DMA. The market has attempted a rally this morning but looks to be in need of more consolidation before moving higher.
Oil continues to exhibit strength, trading at over $96 a barrel, and the dollar cannot seem to rally - these factors will support gold, as will robust physical demand out of China and India and from central bank purchases.
The market should see solid support in the 1662-1666 area, though we do not want to see the gold price fall below 1650, as this would suggest a retest of the 1625 lows as a minimum.
Overhead resistance can be found at the 20 DMA at 1671 in the first instance, 1674-1677 and then 1683-1685.
Today's video looks at the sell off in more detail and our latest trading position.
Oil continues to exhibit strength, trading at over $96 a barrel, and the dollar cannot seem to rally - these factors will support gold, as will robust physical demand out of China and India and from central bank purchases.
The market should see solid support in the 1662-1666 area, though we do not want to see the gold price fall below 1650, as this would suggest a retest of the 1625 lows as a minimum.
Overhead resistance can be found at the 20 DMA at 1671 in the first instance, 1674-1677 and then 1683-1685.
Today's video looks at the sell off in more detail and our latest trading position.