Gold retested the 1480 area before selling off sharply into the close, as traders squared their positions and booked profits before the weekend.
This morning, gold is trading slightly higher and has recovered most of the ground lost late Friday. The market has fallen back into the uptrend channel, though is still moving higher and looks likely to retest the 20 DMA in the 1480 area. A break through here will target stiff resistance around 1500, though a failure could set up a sharp sell off, as the market has risen rapidly off the 1322 lows without any sort of pullback.
Oil has likewise stalled at the 61.8% retracement of its recent sharp decline, though the strength in equities appears relentless. The dollar has fallen sharply following the disappointing GDP data and is currently trading around 82.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.