It may be that gold is moving up to "back test" the break down out of the triangle pattern - if this is the case, gold could move as high as 1280 before dropping sharply to new lows.
Oil remains very weak and is suggesting a total lack of inflationary concerns, whilst the dollar is weaker this morning having failed to hold 81 last week.
Equities remain at or near all time highs, with no signs of momentum waning or a topping process - we continue to assert that no meaningful rally will occur in gold unless or until stocks correct significantly.
Support can be found at 1250, 1238-1242, 1225, 1220, 1238, 1250, 1207-1210, 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.
Resistance can be found at 1260, 1270, 1277-1280 and 1291-1295. A break above 1295 would suggest an end to the downtrend, though it would take a break of 1360 to confirm this was the case.
Today's video for subscribers looks at the recent trading in more detail and discusses our strategy for our next trade.