In quiet trading, gold moved steadily higher for most of the day after finding support at 1336 and has now moved over $100 higher from the lows at 1250 in mid-October.
Although the market looks ready for a minor correction of sorts, a break above last week's highs will suggest a return to 1400 is on the cards, aided by a weak dollar. It is interesting to note that the recent rally has occured despite a strong US stock market that continues to make new highs on a weekly basis.
Support can be found at 1338-1342, 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 1352-1355, 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 thoughts for our next trade.