Gold made another surge higher yesterday, though with less conviction than the previous moves, finding resistance at the key 1352 level and settling at the 50 DMA.
The bulls will want to maintain their recent momentum and push throguh this critical level, thus setting up for gold for a sustained rally, whilst the bears will want to cap gold below the 50 DMA, thereby setting up a bearish "double top" at 1352-1353 on the charts. A break of the uptrend channel, currently at 1341, is the first level to watch for the bears.
The current area is therefore a key battleground for gold that will decide the direction over the next few weeks. Our preference remains to the downside, however the bulls are having a real go here in the face of a plummeting dollar.
Equities remain on fire, powering higher in a classic rally of higher highs and higher lows with no signs of a top in sight. Oil has found some support but is now trading below the 200 DMA for the first time since March, a worrying sign for the bulls and commodities in general.
Support can be found at 1328-1330, 1310, 1300-1305, 1291, 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1352-1353, 1375, 1400 and 1434. A break above 1434 would suggest a major rally was unfolding with a target of 1525 as a minimum.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.
The bulls will want to maintain their recent momentum and push throguh this critical level, thus setting up for gold for a sustained rally, whilst the bears will want to cap gold below the 50 DMA, thereby setting up a bearish "double top" at 1352-1353 on the charts. A break of the uptrend channel, currently at 1341, is the first level to watch for the bears.
The current area is therefore a key battleground for gold that will decide the direction over the next few weeks. Our preference remains to the downside, however the bulls are having a real go here in the face of a plummeting dollar.
Equities remain on fire, powering higher in a classic rally of higher highs and higher lows with no signs of a top in sight. Oil has found some support but is now trading below the 200 DMA for the first time since March, a worrying sign for the bulls and commodities in general.
Support can be found at 1328-1330, 1310, 1300-1305, 1291, 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1352-1353, 1375, 1400 and 1434. A break above 1434 would suggest a major rally was unfolding with a target of 1525 as a minimum.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.