Gold moved higher on Friday, breaking through 1350 and hitting a high of 1355 to cap off a strong week and increase the likelihood that the break out of the down trend channel is the start of a new rally leg. However, until the market can close above 1353, the bears will be hoping to resume the decline and take gold back below 1300.
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.
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.