Gold made a further low at 1305 yesterday, bouncing off support at the 50 DMA. The rebound has been weak and unenthusiatic, suggesting more downside before we get a final bottom.
We do expect a bottom this week and a resumption of the rally once this Wave 2 correction has run its course.
The dollar remains well supported above 80, oil is trading back above $100 a barrel and equities are pushing back towards all time highs. This combination is pressuring gold (the usual positive correlation between gold and oil being reversed this year), though we consider this to be a healthy correction within a new bull market for gold.
Support can be found at 1307, 1295-1300, 1280, 1275, 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.
Resistance can be found at 1318-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail and our targets for this Wave 2 correction.
We do expect a bottom this week and a resumption of the rally once this Wave 2 correction has run its course.
The dollar remains well supported above 80, oil is trading back above $100 a barrel and equities are pushing back towards all time highs. This combination is pressuring gold (the usual positive correlation between gold and oil being reversed this year), though we consider this to be a healthy correction within a new bull market for gold.
Support can be found at 1307, 1295-1300, 1280, 1275, 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.
Resistance can be found at 1318-1322, 1330-1332, 1340-1342, 1352-1354, 1392-1395, 1400, 1420 and 1435. The breakout above 1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.
Today's video for subscribers looks at the recent trading in more detail and our targets for this Wave 2 correction.