With the London markets closed for a Bank Holiday and US markets closed for Memorial Day, the trading was very quiet yesterday - gold moving in a narrow range between 1384 and 1396.
The market tried unsuccessfully to break through resistance at 1400 on a number of occasions last week and looks ready to turn lower again after a feeble attempt at a rally off the 19 May low.
The recent rally has meandered higher, overlapping and criss-crossing in what looks to be a corrective move after what was clearly an impulsive wave down to 1338 the previous week.
Even if the market can manage to break through 1400, which looks unlikely at present, the 20 DMA at 1417 should provide resistance, with further resistance coming in at 1420.
The dollar fell sharply last week after failing to convincingly take out 84, though has found support at 83 and is moving higher again.
Equities continue to move higher, finding further momentum after breaking through the major "double top" formed from the 2000 and 2007 S&P highs. We maintain our stance that the next significant rally in gold will not be forthcoming until we see a meaningful correction in equities.
Oil continues to move lower in a series of lower lows and lower highs, though the trading range is wide and volatile.
Today's video for subscribers outlines our strategy for our next trade and an overview of the bigger picture in gold.
The market tried unsuccessfully to break through resistance at 1400 on a number of occasions last week and looks ready to turn lower again after a feeble attempt at a rally off the 19 May low.
The recent rally has meandered higher, overlapping and criss-crossing in what looks to be a corrective move after what was clearly an impulsive wave down to 1338 the previous week.
Even if the market can manage to break through 1400, which looks unlikely at present, the 20 DMA at 1417 should provide resistance, with further resistance coming in at 1420.
The dollar fell sharply last week after failing to convincingly take out 84, though has found support at 83 and is moving higher again.
Equities continue to move higher, finding further momentum after breaking through the major "double top" formed from the 2000 and 2007 S&P highs. We maintain our stance that the next significant rally in gold will not be forthcoming until we see a meaningful correction in equities.
Oil continues to move lower in a series of lower lows and lower highs, though the trading range is wide and volatile.
Today's video for subscribers outlines our strategy for our next trade and an overview of the bigger picture in gold.