The new uptrend is now unmistakeable in gold and we expect further gains after a short correction here, with Wave 3 to take gold much higher.
The dollar found some buying interest yesterday, as did equities, which led to profit taking in gold - it is clear that these two outside markets remain the most important ones to watch at the moment, with the oil price haivng less effect on gold than it usually does.
A break of 80 for the dollar would be very bullish for gold, whilst a break above 81 would cap any gains and put gold under pressure.
Support can be found at 1322, 1312-1315, 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 is looking increasingly unlikely.
Resistance can be found at 1330-1332, 1340, 1350, 1360, 1377-1380, 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 the next rally phase.